The next dividend payment by Hoffman, Inc., will be $3.10 per share. The dividends are anticipated to maintain a growth rate of

Question

3 years ago

15

6.25 percent forever. Assume the stock currently sells for $49.80 per share. a. What is the dividend yield

1 answer:

Pani-rosa [81] · Answer 1 · 2022-06-26T22:22:16+03:00

Answer:

6.2249%

Explanation:

Dividend yield = next dividend paid / price of the stock

Dividend yield is one of the components used in calculating the total return of a stock.

Total return = price return + dividend yield

price return is the return on a stock as a result of price appreciation

Dividend yield = $3.10 / $49.80 = 0.062249 = 6.2249%