Final answer:
To find the monthly dividend, multiply the stock price of $7 by the dividend yield of 10.28% to get the annual dividend, and then divide by 12. The monthly dividend would be around $0.06.
Step-by-step explanation:
If the current stock price is $7 and it has a dividend yield of 10.28%, we would calculate the annual dividend by multiplying the stock price by the dividend yield. However, since dividends are paid monthly, we would then divide the annual dividend by 12 to find the monthly dividend payout. Here is the calculation:
Annual Dividend = Stock Price x Dividend Yield
Annual Dividend = $7 x 0.1028 = $0.7196
Monthly Dividend = Annual Dividend / 12
Monthly Dividend = $0.7196 / 12 = $0.05997
Therefore, the monthly dividend should be approximately $0.06.