The simplistic answer to the question of what constitutes a good dividend yield is “the higher the better.” Obviously, a 10 percent yield is always better than a 1 percent yield, but there is lot more that goes into a “good” dividend yield … Dividend yield: 4.6%; ... DSL is a good way to get access. Dividend yield is the amount of the dividend divided by the current stock price. It is too good … It will be taxed at the marginal tax rate and treated as income when in a taxable account. Mutual fund yield is often quoted as a forward yield or a trailing twelve month yield. Foreign tax withholding applies which impacts the yield on the investment. Thus, yield is a major decision-making tool used both by companies and investors. As pointed out, a high distribution rate can be accompanied by a declining share price return. Because bond funds are typically sold based on their yield, managers often buy super-high coupon bonds issued when … Chasing after exceptionally high distribution rates is one sure path to CEF investment disappointment. Dividend yield is a stock's annual dividend payments to shareholders expressed as a percentage of the stock's current price. (SEC Yield, in contrast, is a good measure of the income return currently priced into a fund's bonds.) Typically, distribution yields are based on the sum of all distributions paid to investors over the past 12 months, divided by the ETF’s most recent month end NAV. The stock may only be paying a 3 or 4 percent dividend yield, but if its annual yield is 8 percent, the dividend payment actually accounts for about half of the total return. Be it high or low, a company's dividend yield is a key component of its total return. A more striking example is Claymore's 1-5 Yr Laddered Corporate Bond ETF . If a CEF's distribution rate looks too good to be true, it is. In XSB's case the net yield is about 1.63 per cent annually - less than half of the net interest distribution payments. Distribution yield: 9.5%; Icahn Enterprises, LP (IEP, $73.85) is a unique business. The distribution is not subject to any preferential tax treatment. In general, 12-Month Yield gives a good picture of the current yield investors are receiving from their funds. Distribution yield is a measure of an ETF’s actual cash flow payments to investors, shown as a percentage of NAV. Note that we didn't write "it might be" too good to be true. ... Distribution rate is an annualized reflection of the most recent payout and is a standard measure for CEFs. Sec yield, in contrast, is a measure of an ETF’s actual flow. A good measure of an ETF’s actual cash flow payments to investors, shown as a percentage NAV. 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