<span>We provide evidence that dividend yield better predicts returns among dividend payers than alternative pricing factors, contradicting prior research.&nbsp; First, we calculate dividend yield using only the most recent declaration date, substantially increasing return predictability relative to the trailing yield.&nbsp; Second, asset pricing strategies tend to earn low returns within the mature, profitable firms that pay dividends.&nbsp; Cross-sectional tests suggest dividend yield predicts returns because investors value receiving the dividend, rather than it providing information about future earnings.&nbsp; We conclude that dividend yield is a useful valuation metric for mature and easier-to-value firms that tend to pay dividends.</span>