Dividend Yield

Dividend Yield is the annual cash payment a company gives you as a shareholder, expressed as a percentage of the stock's current price. Think of it as the annual return you earn just from holding the stock, separate from any price gains. You'll see this metric when comparing stocks that pay dividends—it helps you understand which ones reward shareholders with regular income. For example, if a company pays $2 per share annually and the stock costs $50, the dividend yield is 4%. Higher yields can be attractive to income-focused investors, but they're not everything; a very high yield might signal trouble, so always check why it's so high before buying.