Dividend yield = 1 / 20 = 5%
In conclusion, investors can get $0.05 dividend for every dollar invested.
Dividend yield measures what percentage return a company pays out to its shareholders. In general, well-established companies may have higher dividend yield, while growing companies may have lower ones. For investors, a company with a high dividend yield may be a good investment if the rest of their fundamentals fall into line also.
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