Dividend Yield vs. Dividend Growth

A high yield pays more today; a growing dividend can pay more tomorrow. Here is how to calculate yield, why fast-growing dividends can overtake high yields and how real companies compare.

Calculating yield

Dividend yield is the yearly dividend divided by the share price. Coca-Cola pays $2.12 a year; at about $88 a share on Sept. 17, 2026, that is a yield of about 2.4%. When the price falls, the yield rises, and when the price rises, the yield falls, even if the dividend itself does not change.

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