Definition
A stock paying $2 a year at $50 yields 4%. The yield rises when the price falls, so a very high yield can be a warning that the market expects a cut.
Formula
Dividend yield = annual dividends per share / share price
Academy › Glossary › ETFs & Portfolio
The annual dividend divided by the share price.
A stock paying $2 a year at $50 yields 4%. The yield rises when the price falls, so a very high yield can be a warning that the market expects a cut.
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