Dividend Yield

TTM (trailing-12-month) yield uses the last 4 quarters. Forward yield annualizes the most recent quarterly dividend. High yield (>5-6%) is often a "yield trap" — the price has fallen anticipating a dividend cut. Mature companies (utilities, consumer staples, telecoms) yield 3-5%; growth companies often 0% (reinvest internally). Dividend yield + buyback yield = "shareholder yield" — meaningful since buybacks have largely replaced dividend increases since 1990s. Tax: qualified dividends taxed at LTCG rates (0/15/20%) if held 60+ days; non-qualified at ordinary income. REITs and most foreign dividends are non-qualified. International ETFs withhold foreign tax — claim foreign tax credit on Form 1116.