Investing and Money Glossary, terms and definitions.

Dividend Yield

A stock's dividend expressed as a percentage of the share price. A high dividend yield can be an indication that a stock is undervalued -- or it can imply that a dividend cut is in the offing. At the end of 1996, the average S&P dividend yield was 2.2%, versus an average of 4.3% from 1950 to 1995.