Dividends-some companies generally the older, more established, like GE for example, return a portion of their profits to investors in the form of dividends instead of reinvesting it back into the company. Dividends can be paid in cash or in additional company shares.
A stocks dividend yield is the ratio of the dividend to the stock price. For example–a stock that has a $100 share price and pays annual dividends of $5 per share has a dividend yield of 5%. This will change with time as the share price fluctuates.
