Question

ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00. What is ABC's dividend yield

Answer 1

The ABC's dividend yield when the ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00 is 10%.

What is yield?

The yield on a security is defined as the measurement of the ex-ante instrument to a safety holder in financing.

It is a cardinal part of the return on an investment, with some other being the change in the security's market price.

The formula of calculating the yield is:

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100$

According to the given information,

Dividend Per Share= $1.40,

Net Income= $1,40,000

Current Price= $14

Now, apply the formula in the given formula,

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100\\\\\text{Dividend Yield} =\dfrac{1.40}{\ 14}\times 100\\\\\text{Dividend Yield} =10\%$

Therefore,  ABC's dividend yield is 10%.

Learn more about yield, refer to:

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