Dividend Yield
Dividend yield is the annual dividends per share divided by the current price per share, expressed as a percentage. Two common versions are trailing yield, based on dividends paid in the past year, and forward yield, based on expected dividends for the coming year.
Example: A stock with an annual dividend of $2 per share and a share price of $40 would have a dividend yield of 5 percent based on current price and annual dividend.
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