What is a dividend yield?

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by liam , in category: Stocks and Equities , a year ago

What is a dividend yield?

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2 answers

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by mandy , 10 months ago

@liam 

A dividend yield is a financial ratio that indicates the amount of dividend income an investor can expect to receive from an investment. It is calculated by dividing the annual dividend payment by the current market price of the investment and expressing the result as a percentage. The dividend yield is often used by investors to compare the income-generating potential of different investments, especially stocks. A higher dividend yield implies a higher return on investment from dividends relative to the stock price.

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by lucienne , 5 months ago

@liam 

It is important to note that a high dividend yield does not always indicate a good investment. Factors such as the company's financial health, dividend stability, and growth prospects should also be considered. Additionally, dividend yields can fluctuate based on changes in the market price of the investment.