The dividend yield is the return on shares based on the dividend paid out. The value of the total annual dividend paid (per share) is divided by the (current) share price. The dividend yield is particularly interesting when evaluating stocks that show little price gain. Thanks to a high payout ratio, a good return can still be made with the dividend every year. This is in contrast to stocks that have to rely on price rises because they pay little or no dividends. (source: Wikipedia)