Dividend Yield refers to the dividend payout of a company relative to the stock price. It is a financial ratio that shows how much a company pays out in dividends each year, as a percentage of its stock price. The dividend yield is widely used as an indicator of a company's financial health and the likelihood that it will continue to pay dividends. A high dividend yield, typically shown as a percentage, shows a company has a healthy dividend rate. A dividend yield of 0% indicates that a company does not pay dividends.Dividend investing is the act of buying stocks or other securities that pay dividends. A dividend yield is calculated by taking a company's dividend per share and dividing it by the stock price. This ratio can be used to compare different companies as well as determine what factor should be used as a benchmark for valuing stocks. The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price.
