How to Calculate the Dividend Yield

You calculate a company's dividend yield by dividing its dividends per share by its stock price. Thus, if a company paid out $3 in dividends for each share of stock, and it had a stock price of $100, the dividend yield would be 3%. The dividend yield tells you the return that an investor would earn from holding a stock if you ignore capital appreciation (increases in the value of the stock) and focus strictly on dividends received.—
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