Dividend Yield

Some companies share profits directly with shareholders through periodic cash payments called dividends. The dividend yield expresses that payout as a percentage of the current share price, so it's easy to compare against, say, a savings account or a bond. A high yield can mean a genuinely generous payout from a stable, mature company, or it can mean the share price has fallen sharply, which mechanically pushes the yield up even if the payout itself hasn't changed. The number alone doesn't tell you which situation you're looking at.