What are the Dividend yield Levels of Stocks?
I know there has been no “official” categorization of Dividend Yield levels so I am taking it upon myself to attempt to give clarity to a subject that quite frankly has irritated me for many years.
As a Dividend Income Investor that invests in high yield stocks it just angers me to read articles that call a stock yielding 2% “high yield” ! Sorry, but it is a just one of those things that is so absurd it makes me angry every time I read something like that. So, in lieu of Anger Management classes I have decided to make up my own “official” chart for the classification of Dividend Stock Yield levels.
Many have asked the following questions :
What is a Normal Yield for a Stock?
What is a High Yield Stock?
What is considered a low yield Stock ?
So here it is:
“Official” Dividend Stock Yield Level Chart:
- None Dividend Stock – No Dividend Yield – 0%
- Extremely Low Yield Stocks – 0% -.9%
- Low Yield Stocks – 1.0% – 1.9%
- Normal Yield Stocks – 2.0 % – 3.0%
- Moderate Yield Stocks – 3.1 – 4.9%
- High Yield Stocks – 5% – 10.9%
- Extremely High Yield Stocks – 11% & above
I believe you will find this chart useful in that it gives clarity to the classification of stock dividend yields. So the next time you read an author that states that a yield of 2.5% is “high Yield” please feel free to promptly correct them and refer them to this “official” dividend yield chart!
As always we ask for your comments, and so that you always have access to our official dividend yield chart above please consider following me – you’ll be glad you did !