Dividend Yield

Dividend Yield is the annual dividend payment a company gives you as a percentage of the stock's current price. Think of it as the yearly return you earn just from holding the stock, separate from any price gains. You'll see this metric when comparing income-focused stocks—it helps you quickly spot which companies are generous with payouts. For example, if TechCorp stock costs $100 and pays $3 in annual dividends, its dividend yield is 3%. A higher yield sounds attractive, but it's worth checking why: sometimes yields spike because the stock price dropped, which might signal trouble. Use dividend yield alongside other metrics to get the full picture of whether a stock fits your goals.