New to stocks? Learn what stock dividend yield, EPS, PE Ratio, and market cap are.
You can choose investment strategies on the chance the stock price will increase over the long term. Another strategy is to choose stocks that pay high dividend yields. Basically, if the company makes money, they return it to their stockholders in the form of dividends. The larger companies typically pay quarterly. The dividend yield is calculated by dividing the annual (not quarterly) dividends divided by share price.
A third strategy by investors is choosing companies that pay dividends and the stock prices are expected to increase over the long term.