# Dividend Yield

Annual dividends per share as a percentage of stock price.

## Definition

Dividend yield expresses the annual cash dividend as a percentage of the current share price. A 4% yield means $4 of dividends per $100 invested.

## Formula

(Dividends Per Share ÷ Stock Price) × 100

## Why it matters

Dividend yield matters most for income-focused investors and as one component of total shareholder return. Very high yields (>8%) often signal market distress — the price has fallen anticipating a dividend cut. Always check the payout ratio alongside.

## How Standard Equity uses it

We compute and display the average dividend yield using the average stock price for the year, not the year-end snapshot — a more representative number.

## The metric

| Category | Yield |
| -------- | ----- |
| Unit     | %     |

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