Question

NEED ASWER ASAPPPPPP.... in desperate need and a quick answer

what is the dividend yield on stock A sells at $20/share, when company A pays a a quarterly dividend of $0.15 per share???
DIVIDEND YEILD=?%
give your answer asa percent rouned to the nearest tenth

Answer 1

To calculate the dividend yield you need to divide the annual dividend per share by the stock price per share and multiply by 100 to express it as a percentage. Since the company pays a quarterly dividend of $0.15 per share we can calculate the annual dividend as follows:

Annual dividend = Quarterly dividend * Number of dividends per year

Annual dividend = $0.15 * 4 = $0.60

Now we can calculate the dividend yield as follows:

Dividend yield = (Annual dividend / Stock price) * 100

Dividend yield = ($0.60 / $20) * 100

Dividend yield = 0.03 * 100

Dividend yield = 3.0%

Therefore the dividend yield on Stock A is 3.0%.

Hope this helped:)