Question

Suppose you own 125 shares of Wal-Mart, which pay a dividend of $0.30 per share per year. How much will you receive in dividends over 5 years, assuming the dividends stay the same and you buy no more stock?

Answer 1

It would be $187.50 for all 5 years

Answer 2

So, Amount paid as dividend for 125 shares for 5 years year = $187.50

Explanation:

Number of shares owned of Walmart = 125

Amount paid as dividend in one year = $0.30 per share

So, Amount paid as dividend for 125 shares in one year = 0.30 × 125

⇒ Amount paid as dividend for 125 shares in one year = $37.5

Now, we need to calculate amount paid for 5 years given that the dividend remains same

So, Amount paid as dividend for 125 shares for 5 years year = 37.5 × 5

⇒ So, Amount paid as dividend for 125 shares for 5 years year = $187.50