Final answer:
To calculate the dividend yield of a company's stock, you divide the annual cash dividends per share by the market price per share and then multiply by 100%. For the given data, with a dividend of $0.62 and a market price of $28.25, the dividend yield is approximately 2.19%.
Step-by-step explanation:
The student is asking how to calculate the dividend yield for a company's stock. Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock's market price. To calculate the dividend yield, we use the formula:
Dividend Yield = (Annual Dividends Per Share / Market Price Per Share) x 100%
Given that the company paid $0.62 in cash dividends per share and the market price per share is $28.25, we perform the following calculation:
Dividend Yield = ($0.62 / $28.25) x 100% = 0.0219 x 100% ≈ 2.19%
So, the dividend yield for this company's stock is approximately 2.19%.
The dividend yield can be calculated by dividing the cash dividends per share by the market price per share and then multiplying by 100. In this case, the cash dividends per share is $0.62 and the market price per share is $28.25.
Dividend Yield = (Cash Dividends Per Share / Market Price Per Share) x 100
Dividend Yield = ($0.62 / $28.25) x 100 = 2.19%