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What is a good dividend yield?

Asked by Anonymous Sep 02, 2026 28 views 1 answers
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Answered Sep 02, 2026

A "good" dividend yield typically ranges between 2% and 5% for stable, established blue-chip equities in normal macroeconomic environments, generally outpacing traditional inflation rates and standard savings account returns. While yields exceeding 6% to 8%—often found in business development companies, real estate investment trusts, or closed-end funds—provide exceptional immediate cash flow, exceptionally high yields can sometimes signal elevated market skepticism regarding the long-term sustainability of the underlying dividend or financial distress within the issuing corporation.

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