Question

you purchased 220 shares of stock at a price of $52.17 per share. over the last year, you have received total dividend income of $230. what is the dividend yield?

Answer 1

The dividend yield is calculated by dividing the total dividend income received by the initial cost of the investment and then converting it into a percentage. For an investment of 220 shares at $52.17 each and a total dividend income of $230, the dividend yield would be approximately 2.00%.

Step-by-step explanation:

To calculate the dividend yield, you need to divide the total dividend income you received over the year by the initial cost of the investment and then multiply by 100 to express it as a percentage.

Your total dividend income is $230. You purchased 220 shares at a price of $52.17 per share. The initial investment cost is 220 shares × $52.17 per share = $11,477.40.

Now, calculate the dividend yield:

Dividend Yield = (Total Dividends Received / Initial Investment Cost) × 100 = ($230 / $11,477.40) × 100 = 2.004%, approximately.

The dividend yield for your investment is approximately 2.00%.