Dividend Yield

How dividend yield is calculated, real yields from well-known companies, and why a very high yield can be a warning sign instead of a bargain.

Getting paid to own

Many companies share part of their profits with shareholders through regular cash payments called dividends. The dividend yield shows how large those payments are compared with the share price. A stock at $50 that pays $2 a year in dividends has a yield of 4%.

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