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Dividend yield Overview
Gives an indication of the income generated by a share of stock. Dividend yield is calculated by taking the amount of dividends paid per share over the year and dividing by the stock's price. For example, if a stock pays out $1 in dividends over the year, trades at $10, then it has a dividend yield of 10%. Dividend producing stocks typically have less price growth versus non-dividend stocks. Holding primarily dividend producing stocks would indicate an income strategy rather than growth. |
