Dividend Yield for Traders: More Than Meets the Eye, Especially When Markets Fluctuate. 9 Stocks to Consider

It's easy to overlook dividends when focusing on short-term trades. That said, the reality is a bit more complicated. a company's dividend payout can offer valuable insights, especially in uncertain markets. Consider Infosys, for example.

Between 2019 and 2025, Infosys navigated a range of market conditions, including the Covid crash, tech booms, fluctuating interest rates, rupee volatility, and emerging AI threats. While fundamental analysis would dictate buy/sell decisions, the company's dividend payouts steadily increased during this same period – from ₹21.5 in FY19 to ₹43 in FY25.

This rising dividend trend is relevant for traders, who may not typically consider dividend payouts. This information can be used to improve the chances of a successful trade, particularly when taking a long position. (Note: Infosys is used as an example and is not on our list of stocks to consider today.)

It's important to clarify that this isn't simply a story about high-dividend-yield stocks. Instead, we're exploring how dividend yield can be a valuable tool for traders. While it might seem unusual, a company's dividend payout and dividend yield are often as important for traders as they are for long-term investors. When used correctly, these metrics can increase the probability of a profitable trade.