Dividend Yield: How It Works and When It’s a Trap
Dividend yield is yearly dividends divided by share price, and a 4.86% Treasury now sets the bar. That 4.86% is the US 10-year Treasury yield on November 6, 2026 (Yahoo Finance), so a stock yielding less needs dividend growth or price gains to make up the difference for the extra risk you’re taking. Below you’ll find the formula, a worked example with $10,000, and the traps I wish someone had shown me earlier.