Question

What is the dividend yield on Stock A that sells at $20/share, when Company A pays a quarterly dividend of $0.05 per share? dividend yield=[?]\% Give your answer as a percent rounded to the nearest tenth .

Answer 1

The dividend yield on Stock A is 1%, rounded to the nearest tenth.

Step-by-step explanation:

To calculate the dividend yield, we need to first calculate the annual dividend per share:

Annual dividend per share = Quarterly dividend per share x 4

Annual dividend per share = $0.05 x 4 = $0.20

Next, we can calculate the dividend yield:

Dividend yield = (Annual dividend per share / Stock price) x 100%

Dividend yield = ($0.20 / $20) x 100% = 1%

Therefore, the dividend yield on Stock A is 1%, rounded to the nearest tenth.