Question

The stock of a company has a current sharp price of $8.50 and an annual dividend of $0.25. find the current yield of the stock.the current yield is approximately what %

Answer 1

It is given that

The stock of a company has a current share price of $8.50 and an annual dividend of $0.25.

We know that

`\text{Dividend yield}=\frac{dividend\text{ }per\text{ share}}{market\text{ value per share}}`

Substitute dividend share=$0.25 and market value per share $8.50, we get

`\text{Dividend yield}=(0.25)/(8.50)`

`\text{Dividend yield}=0.0294`

The percentage of the current yield of the stock is

`\text{Dividend yield \%}=0.0294*100`

`\text{Dividend yield \%}\approx2.94\text{ \%}`

Hence the percentage of the current yield of the stock is 2.94%.