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TIP437: Why Does The Stock Market Go Up? w/ Brian Feroldi
We Study Billionaires - The Investor’s Podcast Network
What Is a Dividend Yield?
A dividend is when a company takes a portion of its profits and gives those profits directly to their shareholders. The yield would be that one dollar in earnings per share divided by the 20 dollar share price. That would be a five % yield on our purchase at 20 dollars. Now i can tell you that, like you seem to be, when i first learned of dividends and dividend yields, i was like, this is like magic. It's like free money. But if it seems too good to be true, it probably is.
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