What Does Dow Jones Industrial Average (DJIA) Yield Mean?
The aggregate dividend yield on the 30 stocks that make up the Dow Jones Industrial Average. The DJIA yield is calculated by adding the dividends of all 30 component stocks, dividing the result by the price-weighted DJIA index value and factoring in the Dow multiplier. Generally, the DJIA yield is used as a trading indicator by investors, as yields below 3% are considered a selling signal and yields above 6% are considered a buying signal.
