What is Dividend Yield?

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Written by Bode
Updated 2 years ago

Expressed as a percentage, it’s the ratio of a company’s annual dividend to its share price. It is calculated by dividing the annual dividend (the amount a company pays investors in a year), by the stock’s price. 

Investors can use it to evaluate the potential perks of investing in a particular company.

Note: Dividend yields often change in response to fluctuations in a company’s stock price.

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