Question

Suppose you bought a $97 share a month ago. It paid a dividend of $0. 57 today and then you sold it for $99. What was your dividend yield?

a. 2.06%
b. 2.65%
c. 0.58%
d. 0.59%

Answer 1

The dividend yield for the investment can be calculated using the formula (dividend / share price) * 100. In this case, the dividend yield is approximately 0.59%.

Step-by-step explanation:

The dividend yield can be calculated by dividing the annual dividend by the original share price and multiplying by 100 to get the percentage. In this case, the original share price was $97 and the dividend received was $0.57. So, the dividend yield is: . ($0.57 / $97) imes 100 = 0.5876%. Rounding to two decimal places, the dividend yield is approximately 0.59%.