Understanding Dividend Yield
CFI is the global provider of the Financial Modeling. Understanding the definition of the dividend yield is fairly simple understanding what the yield means to the investor is another issue. Dividend Yield Theory Explained Intelligent Income By Simply Safe Dividends Yield is the annual percentage return in dividends on your investment. Understanding dividend yield . Buying stocks with a high dividend yield can provide a good source of income but if you arent careful it can also get you in trouble. The dividend yield is the amount of the annual dividend payment divided by the stock price expressed as a percentage. The primary reason to understand dividend yield is to help you understand which stocks offer you the highest return on your dividend investing dollar. It is also a companys total annual dividend payments divided by its market capitalization assuming the number of shares is constantIt is often expressed as a percentage. Those investors that are interested in seeing...