Glossary term

Dividend yield

In plain English

Annual dividend per share divided by share price, expressed as a percentage. Tells you the cash return on owning a share.

Example

$1 annual dividend on a $50 stock = 2% yield.

Educational only. TrustFirst is not a registered investment adviser and does not provide personalized investment advice. This definition is written to teach the concept; it is not a recommendation to take any specific action.