Question

A stock has a market price of $46.10 and pays a $2.40 annual dividend. what is the dividend yield? 4.13 percent 4.84 percent 5.21 percent 5.52 percent 5.78 percent

Answer 1

To solve:
Dividend yield = Annual Dividend / Market Price
Dividend yield = $2.40 / $46.10
Dividend yield = 0.0521
Then we are going to multiply by 100 to get the total in a percent
Dividend yield percent = (0.0521)(100)
Dividend yield = 5.21%