Plain-language meaning
If a stock pays 2 per year and the price is 100, the dividend yield is 2%. The yield can change because dividends change, prices change, or both.
Example
A 3 annual dividend on a 60 share price gives a dividend yield of 5%.
Limitations
Dividend yield is not total return. It excludes price changes, taxes, fees, currency effects and whether dividends are reinvested.
How this term affects your result
Dividend yield affects the result through the units, time period, rate, threshold or method used by the related calculator. Read it together with the page's formula and assumptions before comparing results across tools or sources.
What to check
- Use the same unit system, currency and time period as the related calculator.
- For regulated, health, tax, finance, safety or live-data topics, check the primary source named on the related page.
- If the term is used as a threshold, rate or category boundary, confirm the exact definition before relying on the estimate.
FAQ
Is Dividend yield defined the same way everywhere?
Not always. Some terms are mathematical and stable, while others vary by country, institution, industry, product or data source.
Why link glossary terms to calculators?
Calculator users often need the term at the moment they interpret a result. Linking the definition to the calculator reduces ambiguity.