Dividend yield is a key factor to consider when selecting investments from "summary" of The Little Book of Big Dividends by Charles B. Carlson
When it comes to choosing investments, one key factor to keep in mind is the dividend yield. This metric is a simple yet powerful way to assess the income potential of a stock. Dividend yield is calculated by taking the annual dividend payment of a stock and dividing it by the stock's current price. The result is expressed as a percentage, showing how much income an investor can expect to receive relative to the price they pay for the stock. While dividend yield is not the only consideration when selecting investments, it is a crucial one. A high dividend yield can indicate that a company is financially stable and has a strong track record of returning profits to shareholders. On the other hand, a low dividend yield may suggest that a company is not as financially healthy or that it is prio...
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