Question

What is the dividend yield on Stock A that sells at

$15/share, when Company A pays a quarterly
dividend of $0.20 per share?
dividend yield = [?] %

Give your answer as a percent rounded to the
nearest tenth

Hint: Dividend Yield
annual dividend
share price

Answer 1

5.3%

Explanation:

The annual dividend is 4 times the quarterly dividend, so is $0.80 per share. The yield is the ratio of that to the share price:

yield = $0.80/$15.00 ≈ 0.05333... ≈ 5.3%

The dividend yield is 5.3%.