Is yield important?

What is yield?

Yield is return, usually in a form of dividend of a stock.

So how do we calculate yield of a stock?

Example if you are getting $0.05 dividend of a $1 stock that you purchased, the yield is given by $0.05 divided by $1 which equate to a 5% yield. As simple as that!

So is it important?

The real quick answer is yes and no.

What's the reason for yes?

Its important because in order to get the highest yield of a stock, we need to buy at the lowest possible price.

What's the reason for no?

Its is not important because as an intelligent investor, we shouldn't just purchase stock simply because it gives the highest yield.