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Dividend Yield Definition

Dividend yield is a company's annual dividend payment expressed as a percentage of its current share price.

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What is Dividend Yield?

It allows investors to compare income potential across different dividend-paying stocks.

Dividend yield moves inversely with share price when the dividend amount stays the same.

Example of Dividend Yield

A stock priced at $50 paying $2 in annual dividends has a dividend yield of 4%.

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