Question

A company paid $0.76 in cash dividends per share. its earnings per share is $4.48 and its market price per share is $26.50. its dividend yield equals:_____.

Answer 1

The dividend yield of a company that paid $0.76 in cash dividends per share is equal to 2.87%.

Given the following data:

• Cash dividend = $0.76.

• Earnings per share, EPS = $4.48.

• Market price per share = $26.50.

What is EPS?

EPS is an acronym for earnings per share and it can be defined as the portion of a business firm's profit that is allocated per outstanding share of common stock of the business firm, so as to serve as a profitability indicator.

In Business management, the dividend yield of a business firm can be calculated by using this formula:

Dividend yield = Cash dividends/Market price per share × 100

Dividend yield = $0.76/$26.50 × 100

Dividend yield = 0.0287 × 100

Dividend yield = 2.87%.

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