Question

You purchased 340 shares of stock at a price of $54.57 per share. over the last year, you have received total dividend income of $380. what is the dividend yield?

Answer 1

The dividend yield is calculated by dividing the total dividend income by the total cost of the shares, and the result expresses the return on investment from dividends as a percentage of the share cost.

Step-by-step explanation:

To calculate the dividend yield, you will need to divide the total dividend income received by the total cost of the shares purchased. First, multiply the number of shares (340) by the price per share ($54.57) to find the total cost of the shares. Then, divide the total dividend income ($380) by this total cost. The dividend yield represents the return on investment from dividends alone, not including any capital gains or losses from the sale of the stock.

Here's how you can do the calculation:

1. Total cost = Number of shares × Price per share = 340 × $54.57
2. Dividend yield = Total dividend income ÷ Total cost

After performing these calculations, you will have the dividend yield as a percentage.