Dividend Yield

Dividend Yield measures the annual dividend income an investor receives relative to the market price of a company’s stock. It’s expressed as a percentage and offers a quick snapshot of the income-generating potential of an investment.

Formula:

Dividend Yield = (Annual Dividend per Share / Current Market Price per Share) × 100

A higher dividend yield might indicate a stable, income-generating stock, but it can also reflect market concerns if driven by a falling share price. Yield sustainability depends on consistent earnings and cash flow performance.