What is a dividend yield ?

The dividend yield is the current yield considered by a shareholder while analysing the potential of a stock as it shows how much return it can deliver. The annual dividend per share is the percentage of the share price. 

Share price and dividend yield move in opposite directions as the price jumps suddenly, and dividend pay represents only a small percentage of the total figure. 

Although dividends per share can be a great source of earnings, it should not be directly compared to the rate of return on the fixed interest or cash product as there are risks of capital loss.