---
title: "Definition of Dividend Yield"
url: https://signalscreener.fr/definition/dividend-yield/
markdown_url: https://signalscreener.fr/definition/dividend-yield.md
description: "Dividend Yield shows annual dividends as percentage of stock price."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Dividend Yield"
translations:
  es: https://signalscreener.fr/es/definition/dividend-yield.md
  fr: https://signalscreener.fr/fr/definition/dividend-yield.md
  pt: https://signalscreener.fr/pt/definition/dividend-yield.md
  zh: https://signalscreener.fr/zh/definition/dividend-yield.md
---

# Dividend Yield

## What is Dividend Yield?

Dividend Yield shows annual dividends as percentage of stock price. It's the cash return you get just for holding the stock.

## Think of it like this

A rental property costs $200,000 and pays $10,000/year rent. That's a 5% yield. Similarly, a $50 stock paying $2/year dividends has a 4% yield.

## Formula

```
Dividend Yield = Annual Dividend / Stock Price
```

- **Annual Dividend**: Total dividends paid per share per year
- **Stock Price**: Current stock price

## Why it matters

- Provides income while you hold
- Sign of profitable, mature company
- Cushions against price drops
- Tax-advantaged income for many

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| 0% | No Dividend | Growth company reinvesting profits |
| 0-2% | Low | Some income, focus on growth |
| 2-4% | Moderate | Good balance of income and growth |
| > 4% | High | Strong income, but verify sustainability |
| > 8% | Very High | Possibly unsustainable or risky |

## Real-world example

AT&T: 7% yield - high income. Apple: 0.5% - focuses on growth. REITs: 4-8% - required to pay dividends. Troubled company: 12% yield - dividend cut likely.

## Things to watch out for

- High yield might signal problems
- Dividends can be cut
- Yield rises when price falls
- Total return includes price appreciation

---

This is educational content, not financial advice.

Source: [Definition of Dividend Yield](https://signalscreener.fr/definition/dividend-yield/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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