Dividend Yield

Fundamentals of Market Investing by Adam J. McKee

If your fund owns stocks that pay dividends, you are entitled to your share of that income.  Recall that dividend payments are paid out by the underlying company, usually on a quarterly basis.  Since your fund owns these stocks and not you, the fund gets the dividend payments from the individual companies.  These are all added to the fund’s bottom line, and you get your share in terms of the fund’s yield.  In this case, the current yield of the fund will include the average of those payments.

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