Glossary Background

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.