Dividend yield: what it is and how to read it

What it is

How much the company pays you in dividends each year, as a % of the share price. E.g. a stock at 100 $ that pays 3 $ a year = 3%.

How to read it

A very high yield, on its own, can be a warning: often it's the price falling. Check whether the dividend fits within profit and free cash flow and whether it has risen over the years.

Educational information; not a recommendation to buy or sell.