Look beyond the dividend yieldOften, the most advertised metric of dividend stocks is the dividend yield. A company's dividend yield is its annual dividend payout relative to its stock price. If a company pays out $2 in dividends yearly and its stock price is $100, its dividend yield is 2%. But that's exactly why dividend yield by itself can be misleading. There's no established number that you should be looking for when examining a company's payout ratio because some industries are more dividend-favorable than others.

Source: Daily Sun July 02, 2022 18:00 UTC