Question

Currently Digby is paying a dividend of $16.13 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield

Answer 1

Answer: 14.66%

Step-by-step explanation:

Dividend yield = Dividend / Share price

The dividend being paid is $16.13 per share. As there is no share price given, I shall assume that the share price is $100. The new share price will be:

= 100 * (1 + 10%)

= $110

The Dividend yield would then become:

= 16.13 / 110

= 14.66%

(Use the above method and the share price in the question to find the specific answer to your question).