A company paid a dividend of $0.42 per share last year. If the current selling price of the stock is $27.38, what is the current yield on the stock?
2007-11-13 11:07:16 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
.42 / 27.38 X 100 = 1.53 %
2007-11-13 11:15:42 · answer #1 · answered by don_sv_az 7 · 1⤊ 1⤋
Dividend yield is 1.53%, but that is not necessarily the total yield. To get the total yield, you have to measure the change in the stock price as a percent of the ending stock price and add the dividend yield.
For instance, if the stock started at $25/share a year ago and is now at $27.38, the actual yield on the stock is closer to 11.05% = (27.38-25)/25 + .42/27.38
But the dividend yield will usually do on most finance questions.
2007-11-13 13:14:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Has nothing to do with the current price. What was the price of the stock at the time of the dividend distribution?
2007-11-13 11:38:00 · answer #3 · answered by Anonymous · 1⤊ 4⤋
.42/27.38= 1.53% yield
2007-11-13 11:15:52 · answer #4 · answered by Anonymous · 0⤊ 1⤋