Question

One year ago, you purchased a stock at a price of $19 a share. You recently received an annual dividend of $1.2 a share. Today, you sold the stock for $17 a share. What is your dividend yield on this investment?

Answer 1

Answer:

6.32%

Explanation:

Data provided in the question

Purchase price of share = $19 per share

Annual dividend per share = $1.20

Selling price per share = $17 per share

So, by considering the above information

The formula and the dividend yield on this investment is shown below:

= (Annual Dividend per share) ÷ (Initial price per share) × 100

= $1.20 ÷ $19 × 100

= 6.32%