What is yield in stock market?

In the stock market, yield refers to the amount of return that an investor receives on a particular stock, expressed as a percentage of the stock's price. There are several different ways to calculate yield, but the most common is the dividend yield, which is calculated by dividing the stock's annual dividend by its current market price. For example, if a stock has a dividend yield of 3% and is trading at $50 per share, it means that the stock pays dividends of $1.50 per year ($50 x 3%).

Yield can be an important consideration for investors, as it represents the income that they receive from owning the stock. Some investors may prioritize high-yield stocks in their portfolio as a way to generate more income, while others may focus on stocks with lower yields but strong potential for price appreciation. It's important to note that yield is not the only factor that investors should consider when choosing stocks – other factors such as the company's financial health, growth prospects, and the overall market environment can also be important considerations