Dividend Yield

Dividend Yield = Annual Dividend per Share / Share Price × 100%. It is the cash-income return an investor earns if the dividend stays constant and the share price does not move.

A rising yield can mean two things: management raised the dividend, or the share price fell. Always check the underlying driver — a yield spike caused by a collapsing share price is often a value trap rather than an opportunity.

Tax treatment varies by jurisdiction. In the United States, qualified dividends are taxed at long-term capital-gains rates; in Saudi Arabia and most GCC markets, dividends are tax-free for individual investors.