Okuzeka
Investing & the Stock Market vocabulary · Dividends & Corporate Actions

Dividend yield

Meaning in investing & the stock market, with examples

/ˈdɪvɪdend jiːld/nounCore term

In investing & the stock market, dividend yield means: A company's yearly dividend per share divided by its current share price, shown as a percentage. It shows how much income the share pays compared with its price.

In Turkish: temettü verimi, kar payı verimi

How it is used

Income investors screen for stocks with a high dividend yield and compare it with bond yields and deposit rates. Because it uses the share price, the yield rises when the price falls. A very high dividend yield can be a warning that the dividend may be cut.

Example sentences

  1. The utility has a dividend yield of about 6 percent, much higher than the market average.

  2. Its dividend yield rose sharply only because the share price collapsed.

Common collocations

  • high dividend yield
  • dividend yield of
  • forward dividend yield
  • dividend yield stocks
  • dividendA part of a company's profit that it pays to its shareholders, usually in cash and usually a fixed amount for each share.
  • yieldThe income an investment produces, shown as a yearly percentage of its price. For bonds, it is the return an investor gets if the bond is bought at today's price.
  • ex-dividend dateThe first trading day on which a share is sold without the right to the next dividend. Buyers on or after this date do not receive that payment.
  • share priceThe amount of money one share of a company costs on the market at a given moment, set by the orders of buyers and sellers.

More terms: Dividends & Corporate Actions

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This page explains English vocabulary for learners. It is not financial advice.