Dividend yield is equal to the annual dividend per share divided by the stock price. For example, if the price of a stock is $20 per share and that particular company has an annual dividend of $1, then the dividend yield would be $1 / $20 or 5%.
Many investors use the dividend yield to determine if a stock or the stock market as a whole is expensive or not. For the dividend yield of all 30 stocks that comprise the Dow Jones Industrial Average plus the 10 stocks that make up the Dogs of the Dow, try our YTD performance tables.
Related Terms: Dividend – Dogs of the Dow – Earnings Yield – PE Ratio – Dividend Declaration Date – Dividend Payment Date – Dividend Record Date – Price to Book Ratio