Dividends

Cash a company pays out to its shareholders, usually every quarter. The dividend yield is the yearly dividend as a share of the share price.

Simple example

A company pays $0.50 per share every quarter, or $2 a year. With the share price at $50, the dividend yield is $2 ÷ $50 = 4%.

$0.50Q1+$0.50Q2+$0.50Q3+$0.50Q4= $2 a year per shareDividend yield = $2 ÷ $50 share price = 4%
Made-up numbers, for illustration only.