Dividend yield measures how much cash flow you receive for each dollar invested in a stock. It is calculated by dividing the annual dividend per share by the current stock price, then expressing the result as a percentage.

A higher yield can signal attractive income potential, but it can also indicate that the stock price has fallen significantly. Always consider the company's ability to sustain or grow its dividend alongside the yield itself.

• done_all Formula: Dividend Yield = (Annual Dividend Per Share / Stock Price) × 100
• done_all Income Focus: Yield helps income investors compare stocks and bonds on a common basis.
• done_all Yield Trap: An unusually high yield may signal a dividend cut is coming if earnings are declining.
• done_all Growth vs. Income: Growth stocks tend to have low or no yield, while mature companies often pay higher dividends.