Dividend Yield
A stock's annual dividend as a percentage of its share price.
What it means
Dividend yield tells you the cash income a stock pays relative to its price. It is the headline number for income investors, but a very high yield can be a warning sign that the market expects a dividend cut.
Formula
Dividend Yield = (Annual Dividend Per Share ÷ Share Price) × 100
Example
A $100 stock paying $4 per year in dividends yields 4%.
What is a good Dividend Yield?
Broad-market yields sit around 1 to 2%. Solid dividend payers often yield 2 to 5%. Yields above 8% deserve scrutiny, as they are frequently a sign of a falling price or an unsustainable payout.
See it on real stocks
Every stock analysis page shows Dividend Yield alongside the other key metrics: