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Dividend

Dividend yield

Beginner

Dividend yield is the annual dividend divided by the current share price, expressed as a percentage. Example: Stock costs $100, annual dividend $4 → dividend yield = 4%. Watch out: A very high yield (e.g. > 8%) can look tempting but is often a warning: either the price crashed or the dividend isn't sustainable. Always read alongside the payout ratio and free cash flow.

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For educational and informational purposes — not investment advice.