Question

A stock currently sells for $49. the dividend yield is 3.8 percent and the dividend growth rate is 5.1 percent. what is the amount of the dividend that was just paid?

Answer 1

The amount of the dividend that was just paid is $91.23

Given,

Current price of stock - $49

Dividend yield - 3.8 percent

Dividend growth rate - 5.1 percent

In order to get the amount of the dividend to be paid in one year, we calculate it using the below given formula-

Dividend yield = Dividend for next period × Current price

= $49 × 3.8%

= $49 × 1.862

= $91.23

Therefore, the amount of the dividend that was just paid is $91.23

In order to share profits with a company's stockholders, dividends are used to make payments. Dividends can be either distributed quarterly, or may be paid out as cash or in the form of reinvestment in additional stock.

To learn more about dividends here:

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