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Dividend yield shows how much a company pays in dividends relative to its stock price. It's calculated as annual dividend per share divided by price per share.
A higher yield isn't always better—it could indicate a falling stock price or unsustainable dividend. Compare yields within the same sector.
Yield changes daily as stock prices fluctuate. "Yield on cost" uses your purchase price for a more personal measure.
Understanding dividend yield helps you make better investment decisions and plan for taxes. Use our calculate yield to see how it applies to your situation.
