Whats the difference between dividend-paying stocks and high-yield stocks?
Dividend yield is simply the current annual dividend amount divided by the stock’s current price. If The Three-Legged Chair Co. (ticker: OOOPS) pays $2 per year and trades for $50 per share, its yield is 4 percent (2 divided by 50 is 0.04). A high-yielding stock offers a significant dividend yield. Some dividend-paying stocks, such as Microsoft or Wal-Mart, sport low dividend yields (below 1 percent), so they’re not high-yielding.
