Overview
Dividend yield compares annual dividends with current share price.
Formula
Dividend Yield = Annual Dividend per Share / Share Price
How to Interpret
High Value
A high yield can indicate income appeal or market concern about sustainability.
Low Value
A low yield may reflect growth reinvestment or premium pricing.
Where It Is Used
Interpreting Dividend Yield with company-specific distribution ranges is usually more stable than relying only on sector average.