Question

Currently baldwin is paying a dividend of $15.64 (per share). If this dividend were raised by $3.64, given its current stock price what would be the dividend yield?

Answer 1

The dividend yield is 10.71%

Step-by-step explanation:

The dividend yield is computed as:

Dividend yield = Current dividend + Rise in dividend / Current stock price

where

Current dividend is $15.64

Dividend will increase by $3.64

Current stock price is $179.90

Putting the values above:

= $15.64 + $3.64 / $179.90

= $19.28 / $179.90

= 10.71%

Note: The current stock price is taken from the stock market summary