Glossary · from the DESK dictionary
Dividend Yield
The annual dividend expressed as a percentage of the current share price.
In plain words
Shows how much 'yield' you earn on your invested capital from dividends alone.
Formula
Dividend yield = Annual dividend per share / Share price
Divides the annualized dividend per share by the current share price.
Example
A $100 stock paying a $3 annual dividend has a 3% dividend yield.
What it means for traders
A key metric for income-focused investors and for comparing different dividend stocks.
Common pitfalls
An unusually high dividend yield can be a warning sign of an impending dividend cut (driven by a falling share price).
Related terms
Capital Gains Yield · Distribution Yield · Dividend · Dividend Aristocrat · Dividend Payout Ratio · Dividend Per Share (DPS) · Dogs of the Dow · High Dividend Strategy · Dividend Trap · REIT (Real Estate Investment Trust) · Yield · Yield on Cost
From the DESK dictionary. For information only, not investment advice.
This is one page of many.
- The DESK dictionary explains more than 9,400 market terms like this one, in English and German – searchable, sorted by topic and difficulty, with favourites.
- Plus the Macro Terminal with more than 900 indicators per country, company pages and a weekly report.
Also open to read: Glossary A–Z · Free calculators · Weekly report archive
DESK is a research tool and not investment advice. Page generated: 2026-10-12.