High Dividend Yield Stocks
High Dividend Yield Stocks are shares of companies that pay a higher-than-average dividend relative to their stock price. These stocks are attractive to investors seeking a steady stream of income in addition to the potential for capital gains. The dividend yield is calculated as the annual dividend per share divided by the stock price. Companies with high dividend yields are often well-established, financially stable, and may prioritize returning profits to shareholders. Investors typically favor these stocks for their ability to generate passive income, making them a popular choice for income-focused portfolios, particularly in low-interest-rate environments.
Related Terms
Long-Term Capital Gain Tax
Long-term capital gain tax is the tax levied on profits from the sale of shares...
Beta Coefficient
The Beta coefficient measures a stock’s volatility relative to the market, aiding investors in assessing...
Cash Ratio
The cash ratio is a liquidity ratio that measures a company’s ability to pay off...
Adjusted Closing Price
The adjusted closing price of a stock reflects modifications made to account for corporate actions—such...
Long Strangle
A long strangle is an options strategy where a trader buys a call option and...
Go Public
To 'go public' means a company gets listed on the stock market by launching an...
