Question

If a company has earnings per share of $3.47, book value per share of $68.35, dividends per share of $1.20, and common stock with a current market price of $79.91 per share, what is its dividend yield percentage?

Answer 1

The dividend yield percentage for the company's stock is calculated by dividing the dividends per share by the current market price per share and then multiplying by 100%. In this case, it is approximately 1.50%.

Step-by-step explanation:

To calculate the dividend yield percentage, you divide the dividends per share by the current market price per share. In this case, the company has dividends per share of $1.20 and a current market price of $79.91 per share. The formula to find the yield is:

Dividend Yield = (Dividends per Share / Market Price per Share) × 100%

So, for this company:

Dividend Yield = ($1.20 / $79.91) × 100% ≈ 1.50%

The dividend yield for the company's stock is therefore approximately 1.50%.