What is the dividend yield on a stock?

When you decide to invest in or buy a share in a particular company’s stock, it’s important to first understand the stock’s value and progress in the current market. Once you have assessed that, you need to find out how much the yield of the dividend would be. The dividend yield is expressed as a percentage and denotes the amount of return you would be receiving from your particular investment to dividend ratio. If the company’s number of shares in the market remains constant, then it can be read as the total dividend payment divided by the number of shares.