Question

What is the dividend yield on stock A that sells 20$/share, when Company A pays a quarterly dividend of $0.20 per share? Give your answer as a percent rounded to the nearest tenth

Answer 1

the dividend yield is 4%

Step-by-step explanation:

The computation of the dividend yield is as follows:

Dividend yield = Dividend per share ÷ current share price per share

= ($0.20 × 4 quarters) ÷ $20

= $0.80 ÷ $0.20

= 4%

hence, the dividend yield is 4%

The same is determined by applying the above formula