What is a good dividend yield?

When evaluating a stock's dividend yield, investors often wonder: What constitutes a good dividend yield? The answer, however, is not a one-size-fits-all metric. A dividend yield is calculated by dividing the annual dividend per share by the stock's price per share. While a higher yield may indicate a more generous return on investment, it can also reflect a stock's perceived risk. Lower-yielding stocks may offer more stability and growth potential, while higher-yielding ones may have a higher degree of volatility. Ultimately, investors should consider a company's financial health, growth prospects, and industry standards to determine if a dividend yield is 'good' for their individual investment goals and risk tolerance.