What Is Dividend Yield?
Definition of Dividend Yield
Dividend yield is a financial ratio that measures the annual dividend per share of a company's stock relative to its current market price. It is expressed as a percentage and is calculated by dividing the annual dividend per share by the current market price per share.
Importance of Dividend Yield
Dividend yield is an important metric for investors to consider when evaluating a stock. A high dividend yield can indicate that the company is financially stable and has a history of paying dividends to shareholders. However, it is important to note that dividend yield is not the only factor that investors should consider when making investment decisions.
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