Dividends & dividend yield

Some companies share cash with owners, but yield needs context.

A cash payment to owners

A dividend is cash a company chooses to pay to shareholders, often on a regular schedule. Other companies keep profits to invest back into growth.

Yield puts it in percentage terms

Dividend yield compares annual dividends with the current share price. If a $100 stock pays $3 per year, its yield is about 3%.

High yield is not free money

Yield can jump when a share price falls, which may signal worry. Dividends can be reduced or stopped, so look at the business rather than chasing the highest number.

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For education only. Quoliv uses fake money and does not provide personal financial advice.