What is dividend yield?

A stock pays $0.50 a share each quarter, $2.00 a year, and trades at $50. Its dividend yield is $2 ÷ $50 = 4%. If you own 100 shares, worth $5,000, you would receive about $200 a year while the dividend stays the same.

If the price falls to $40 and the dividend does not change, the yield rises to 5%. The yield went up because the price fell, not because the company paid more.

On JagSim's Research page, the Screener has a Dividend filter for stocks that pay a dividend or yield above 2% or 4%; its filters and sorting are in JagSim Pro. JagSim pays cash dividends into your account on the shares you hold, the morning after each ex-dividend date, and the Upcoming dividends card on Portfolio lists the ones ahead. On Pro, the financial statements include each company's dividend history, and a company page has a dividend income planner.

Chasing the highest yield. A very high yield often comes from a falling share price, and a company under pressure may cut its dividend. The yield is only as good as the dividend behind it.

Ignoring the price. A 4% yield does not help much if the share price falls 20%. Total return counts both the dividends and the price change.

How do you calculate dividend yield?

Divide the dividends paid per share over a year by the share price. $2 a year on a $50 stock is a 4% yield.

Is a higher dividend yield better?

Not on its own. A high yield can be a sign the market expects the dividend to be cut. Whether the dividend has been paid and kept over time matters as much as its size.

What is trailing and forward yield?

Trailing yield uses the dividends paid over the last 12 months. Forward yield uses the dividends expected over the next 12 months, based on the latest announced amount.

Do all stocks pay dividends?

No. Many companies, especially fast-growing ones, keep their profits to reinvest. Coins never pay dividends.