Dividend Yield Calculator
What Is the Dividend Yield?
A stock's dividend yield is a ratio showing how much a company pays out in dividends each year relative to its stock price. The reciprocal of the dividend yield is the dividend payout ratio.
Key Takeaways
- The dividend yield is the amount of money a company pays shareholders for owning a share of its stock divided by its current stock price.
- Mature companies are the most likely to pay dividends.
- Companies in the utility and consumer staple industries often have relatively higher dividend yields.
- Real estate investment trusts, master limited partnerships, and business development companies pay higher-than-average dividends; however, the dividends from these companies are taxed at a higher rate.
- Higher dividend yields don't always indicate attractive investment opportunities because the dividend yield of a stock may be elevated as a result of a declining stock price.
Learn more at Investopedia