The Distribution Yield measures the cash distributions paid by an income-paying vehicle to shareholders. Because these distributions are usually paid quarterly, the distribution yield is typically calculated on a quarterly basis.For example, a fund that has increased its annual dividend for three consecutive years might have a distribution yield of 5%. This would mean that investors can look forward to receiving $0.20 in dividends for every $1 invested in the fund.The distribution yield is one of the most important things to look at before investing in a stock. It tells you how much cash that company is handing out to its investors and whether it will have enough money to continue paying those dividends in the future.
