dividend yield

Popular Terms
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.

Use 'dividend yield' in a Sentence

If you want to do well in the stock market then you need to shot for having as high of a dividend yield as possible.
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Knowing the potential dividend yield can help you to forecast what the coming years profits may be for your business.
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The stocks that Frank had chosen to invest in were risky -- and his broker had advised against them -- but several months later, no one could argue with the dividend yield he had to show for it
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