Glossary

Dividend Yield

Finance

Definition

Dividend yield is a financial ratio that shows how much a company pays in dividends each year relative to its stock price, expressed as a percentage. In the context of a renewable energy YieldCo or utility stock, the dividend yield tells investors the annual cash return they can expect from dividends alone. For example, if a renewable energy YieldCo stock trades at $20 and pays $1 in dividends per year, its dividend yield is 5%. A stable or growing dividend yield can make sustainable energy investments attractive to income-focused investors.