The ABC's of Stocks.
If you feel prepared to dive into dividend-paying stocks, check out our Broker Center. Financial Dictionary. Normally, only profitable companies pay out dividends. Note that there is an inverse relationship between yield and stock price.
It's not all about yield When shopping for dividend stocks, it's important to keep in mind that a high dividend yield alone doesn't make a stock a great investment. How to Invest in Stocks.
Thus, should events occur which are detrimental to the share price, the allure of the dividend combined with the stability of the company can support the price somewhat. It's important to realize that a stock's dividend yield can change over time, either in response to market fluctuations or as a result of dividend increases or decreases by the issuing company. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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Your input will help us help the world invest, better! Therefore, Microsoft's dividend yield is:.
What is a Small-Cap Stock? This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. Calculating dividend yield from quarterly or monthly dividends Most stocks pay quarterly dividends, and some even pay on a monthly basis. Search Search: InvestingAnswers, Inc.
Premium Services. Compare Brokers. Learn How to Invest. You might also like. Dividend yield refers to a stock's annual dividend payments to shareholders, expressed as a percentage of the stock's current price.