Question

West Wind Tours stock is currently selling for $48 a share. The stock has a dividend yield of 3.2 percent. How much dividend income will you receive per year if you purchase 200 shares of this stock?

Answer 1

Answer:

$307.2 per year

Explanation:

We know that,

Dividend yield = Percentage of the current stock selling price

So, the dividend would be

= $48 × 3.2%

= $1.536

For 200 shares, the dividend income would be

= Number of shares purchased × dividend per share

= 200 shares × $1.536

= $307.2 per year

First, we have to find out the dividend per share and then multiply it by the number of shares purchased