Question

The next dividend payment by Hillside Markets will be $2.6 per share. The dividends are anticipated to maintain a 10 percent growth rate forever. The stock currently sells for $65 per share. What is the dividend yield?

Answer 1

4.00%

Step-by-step explanation:

The computation of the dividend yield is shown below:

Dividend Yield = Most recent dividend ÷Current Share Price

= $2.6 per share ÷ $65 per share

= 4.00%

We simply divided the most current dividend by the current share price so that the dividend yield could be calculated and the same is to be considered

hence, the dividend yield is 4%