Dividend yield
Annual dividend per share divided by share price.
Plain languagePractical exampleConnected reading
01
What is it?
Annual dividend per share divided by share price.
02
Why does it matter?
It compares cash distributions with the current market price.
03
How should it be read?
Check gross versus net amount, sustainability, special dividends and price date.
04
Common mistake
Treating a high yield as risk-free or a guaranteed future payment.
A simple example
Annual dividends of 5 on a price of 100 imply a 5% gross dividend yield.