Question

A stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. What is the dividend yield per stock share per year?

a) 2.8%
b) 3.5%
c) 9.9%
d) 11.3%

Answer 1

Answer: c) 9.9%

Step-by-step explanation:

Answer 2

9.9 %

Step-by-step explanation:

he formula for calculating dividend yield is as follows,

Dividend yield= Annual dividend/stock price x 100

For this case: Annual dividend = 4 ( $ 2.1 per quarter)

=$ 8.4

Stock price: $85

Dividend yield = $8.4/$85 x 100

=9.88%

=9.9 %