Question

Stock yield is found by the annual dividend divided by?

Answer 1

Answer:

Stock Yield = $\frac{Annual Dividend}{Current Stock Price}$

Step-by-step explanation:

Stock yield is found by the annual dividend divided by the current stock price.

There is an inverse relationship between the stock yield and the current  stock price.

For example, let's assume we have some shares of Company ABC, which pays $1.20 per share in annual dividends and the current stock price is $12.00, then by using the formula above we can calculate the stock yield of the Company ABC as,

Stock Yield  of company ABC = $\frac{Annual Dividend}{Current Stock Price}$

                                                  = $\frac{\ 1.20}{\ 12.00}$

                                                   = 0.1

                                                  = 10%