Question

A share of a stock is currently selling for 20.80. If the dividend just paid is 2.00 and investors are seeking a 14

1) 8.33%
2) 9.62%
3) 10.00%
4) 11.54%

Answer 1

The dividend yield for the stock is 9.62%.

Step-by-step explanation:

To calculate the dividend yield, we divide the annual dividend per share by the current share price. In this case, the dividend just paid is $2.00 and the share price is $20.80. So, the dividend yield is 2.00 / 20.80 = 9.62%