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One may have seen headlines like this:<\/span><\/p>\n “ABC’s yield is now X%! Is it time to buy?”.<\/span><\/span><\/i><\/p>\n <\/span><\/span><\/p>\n Granted most titled content like this will provide explanations and\/or judgments at first glance, if X% is high or in the double digits, I’d be interested too. However, let us remind ourselves of the specific formula for dividend yield, and that is:<\/span><\/span><\/p>\n <\/span><\/span><\/p>\n Dividend yield = Dividend amount of last 12 months \/ Current price<\/span><\/span><\/i><\/p>\n <\/span><\/span><\/p>\n Image produced by Gemini.<\/i><\/span><\/span><\/p>\n Before I hit the “buy” button, I will be interested in ABC itself, and that means I will need to do some fundamental analysis on the company. Some financial figures I would look at are:<\/span><\/span><\/p>\n <\/span><\/span><\/p>\n dividend growth rate<\/span><\/span><\/p>\n It is difficult to increase yield over time because the percentage may increase as both the dividend amount and price decline simultaneously.<\/span><\/span><\/p>\n …<\/p><\/div>\n