Question

A stock is currently selling for $50.00 per share and it pays a dividend of $2.00 a share per year then the dividend yield is what percent?

Answer 1

4%

Explanation:

Calculation to determine what the dividend yield percent is

Using this formula

Dividend yield=Annual Dividend per share ÷Current stock price per share

Let plug in the formula

Dividend yield=$2.00/$50.00

Dividend yield=0.04*100

Dividend yield=4%

Therefore the dividend yield percent is 4%