Dividend Yield

Dividend yield is a financial metric that measures how much a company pays out in dividends each year relative to its stock price. It is expressed as a percentage and is calculated by dividing the annual dividends paid per share by the price per share. It is an important indicator for income-seeking investors as it shows the potential earnings on an investment relative to its current price. However, a high dividend yield can sometimes be misleading if the stock price is falling due to company troubles; hence, it should be evaluated in the context of the company's overall financial health and stability.