Dividend Yield

The ratio of annualized dividends to the price of a share. Dividend yields are used to measure the percentage return on investment in a share. High yields may mean high dividends or they may mean that the price of the share has fallen, making the ratio look impressive. Low yields may mean that the company's share price is high in anticipation of rapid growth, or that the company is not distributing much of its earnings in dividends, preferring to keep cash for reinvestment in the business.