Dividend yield

Dividend yield is a stock's dividend in relation to the stock price. Some companies provide a high dividend compared to the share price. Examples of companies that provide high dividends in relation to the stock price are real estate companies and investment companies.

A high dividend yield makes it more interesting to own shares in a company. Some are exclusively looking for stocks with high dividend yields and buy shares in these companies. Sometimes, however, it may be that a stock has a high dividend yield just temporarily due to an extra large dividend that year.

Dividend yield = dividend per share / share price