A stock currently sells for $48. The dividend yield is 3.7 percent and the dividend growth rate is 5 percent. What is the amount of the dividend that was just paid?

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asked May 24, 2024 99.1k views

1 Answer

Geekygecko · Answer 1 · 2024-05-29T19:01:25+0000

The amount of the dividend that was just paid is $1.776 per share, calculated using the stock's current price of $48 and a dividend yield of 3.7%.

To calculate the dividend that was just paid based on a stock's current price and dividend yield, you can use the following formula:

Dividend = Current Stock Price × Dividend Yield

Given that the stock currently sells for $48 and the dividend yield is 3.7%, the calculation would be:

Dividend = $48 × 0.037

Dividend = $1.776

Therefore, the amount of the dividend that was just paid is $1.776 per share.