A company pays an annual dividend of $3 per share, and the current market price of its stock is $60 per share. Calculate the dividend yield. Discuss what this ratio indicates about the return on investment from dividends for shareholders. Analyze the potential factors that could influence changes in dividend yield, such as variations in dividend payments and fluctuations in stock price. Consider the implications of a high or low dividend yield for the company's attractiveness to income-seeking investors. Discuss the strategic importance of maintaining a consistent dividend policy, including providing stable returns to shareholders, signaling financial health, and enhancing investor confidence. Explain how dividend yield compares to other return metrics, such as total return and earnings yield, in providing a comprehensive view of shareholder returns. Discuss the role of dividend yield in investment decision-making, portfolio management, and performance evaluation.