The Dividend Yield is a financial ratio that shows how much a company pays out in dividends relative to its stock price. It is often expressed as a percentage and is an essential metric for income-focused investors. A higher dividend yield indicates that the company returns a larger portion of its earnings to shareholders through dividends. However, an unusually high yield may signal potential risks, such as a decrease in stock price or unsustainable dividend payouts. Dividend yield can vary by industry, and it should be analyzed in the context of other financial factors.
