How does Dividend Yield work? - Stock Market Basics

Have you seen the dividend yield ratio and interested in what it means? In this video, you'll learn what dividend yield is, how it works, and what to look out for. Dividend yield is an important metric when evaluating stocks that pay dividends.

Dividends can provide compound interest for an investor when investing over a long time horizon! Dividend yield allows you to understand how much in dividends you'll receive per year on your investment. It can be a very useful tool for comparing companies with different share prices and different dividend payout amounts.

Dividend yield can change on a daily basis depending on the price of the stock. Sometimes, unusually high dividend yields can be a warning sign to investors and it is something to be cautious of. Likewise, companies with a low dividend yield, or no dividend at all, are not necessarily bad investments either! Dividend yield is just one tool an investor has in their toolkit to make great financial decisions.

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Disclaimer
This channel is for entertainment purposes only and is not investment advice. All videos published on this channel are informational in nature and are not intended to give advice or recommendations about any particular security or investment. Before making any investment decisions, I would recommend you to speak to a financial professional that is qualified to provide adv