Question

Currently digby is paying a dividend of $19.67 (per share). if this dividend were raised by $3.64, given its current stock price what would be the dividend yield?

Answer 1

The dividend yield for Digby is $23.33

What is Dividend Yield?

• A financial ratio (dividend/price) called the dividend yield, which is stated as a percentage, demonstrates how much a firm pays in dividends annually in relation to the price of its stock.
• Price/Dividend, often known as the dividend yield ratio, is the counterpart of dividend yield.
• The amount of money a firm pays shareholders for owning a share of its stock divided by its current stock price is known as the dividend yield, which is represented as a percentage.
• The majority of mature corporations pay dividends.
• The dividend yields of businesses in the consumer goods and utility sectors are frequently greater than average.
• The dividends from real estate investment trusts (REITs), master limited partnerships (MLPs), and business development corporations (BDCs) are taxed more heavily than the typical dividend.

Explanation:

Given that

Dividend per share = $19.69

Increase in Dividend = $3.64

Using this formula

Dividend yield = Dividend per share + Increase in Dividend

Dividend yield = $19.69+$3.64

Dividend yield =$23.22

Therefore the Dividend yield will be $23.22

To learn more about Dividend yield with the given link

brainly.com/question/28044310

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