Question

what is the dividend yield on Stock A that sells 15$/share, when company A pays a quarterly dividend of $0.15 per share

Answer 1

Answer: The dividend yield on Stock A = 0.04

Step-by-step explanation:

Given: quarterly dividend = $0.15 per share

Annual dividend per share = 4 x 0.15 = $0.6  [1 year = 4 quarters]

Stock's price per share = $0.15

The computation of dividend is given by :-

Dividend yield = (annual dividend per share) divided by (the stock's price per share).

Here, Dividend yield = (0.6) ÷ 15 =  0.04

Hence, the dividend yield on Stock A = 0.04