dividend yield
Definition
Annual rate of return on common stock (ordinary shares) or preferred stock (preference shares), computed by dividing the annual dividend by the shares' market price. Dividend yield reflects the return on the current 'opportunity value,' and not on the historical cost of the investment. As the price of the shares declines, the dividend yield goes up indicating that the shares are priced cheaply and are a 'good buy.' Such shares usually attract risk averse investors.
dividend yield is in the Accounting & Auditing, Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.
dividend yield appears in the definitions of the following terms: equity fund, fixed income security, Garman Kohlhagen model and growth investing
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