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Wide diversification is only required when investors do not understand what they are doing.

~Warren Buffett

Dividend Stocks - Table of Contents
Dividend Stocks: Introduction
Dividend Stocks: Dividend Yield
Dividend Stocks: Important Dates


Dividend Stock: Dividend Yield

The dividend yield for a stock is the return you would achieve over the next 12-months, assuming that both the dividend payout and the share price remain constant for the year.

It’s calculated by dividing the expected next 12-months dividends by the share price. For example the yield would be 5% for a stock currently trading at $100 per share that is expected to pay $5 in dividends over the next year ($5 divided by $100).