| The Dividend Rate refers to the percentage of a company's share price that is paid out as dividends to shareholders. It is calculated by dividing the annual dividend payment by the stock's current market price. This rate is essential for income-focused investors looking for steady returns through dividends. A higher dividend rate may indicate a company's strong commitment to rewarding shareholders. However, it suggests the company isn't reinvesting enough into growth. Investors should consider the dividend rate along with other factors like earnings stability and growth potential. |
