The next dividend payment by Hillside Markets will be $2.35 per share.The dividends are anticipated to maintain a 4.5 percent growth rate forever.The stock currently sells for $65 per share.What is the dividend yield?
A)3.20 percent
B)3.62 percent
C)3.81 percent
D)4.50 percent
E)4.81 percent

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the annual dividends per share divided by the price per share. Given the next dividend payment is $2.35 and the current stock price is $65, the dividend yield = ($2.35 / $65) * 100 = 3.62 percent.

The Next Dividend Payment by Hillside Markets Will Be $2