Dividend yield is a company’s annual dividend per share divided by its current share price, expressed as a percentage. It shows the income return an investor gets from dividends alone, independent of any change in the share price itself.
For example, a stock paying RM0.20 in annual dividends per share, trading at RM5.00, has a dividend yield of 4% — every RM100 invested at that price would generate roughly RM4 a year in dividend income, before accounting for price movement.
Yield alone can’t distinguish between a genuinely generous payout and a falling share price inflating the ratio, which is why it’s typically screened alongside payout ratio and dividend history rather than on its own. See how to screen for dividend stocks for the fuller set of checks worth running before treating a yield as reliable.