What Does Dividend Yield Tell You About a Company?

Thomas-Brock-6-What does dividend yield tell you about a company

In this video, Thomas Brock explains that a dividend yield measures the annual dividend income a company pays relative to its stock price, showing investors how much income they can expect for each dollar invested.

Video Transcript

A dividend yield is a measure of the amount of dividend income a company will pay you over a one year horizon divided by that company's stock price. For an investor, a dividend yield tells you how much income you can expect to receive for every dollar you invest in a company.