Dividend yield is defined as
A) the last four quarters of dividend income expressed as a percentage of the par value of the stock.
B) the last four quarters of dividend income expressed as a percentage of the current stock price.
C) the last dividend paid expressed as a percentage of the current stock price.
D) the next dividend to be paid expressed as a percentage of the current stock price.

Question

Quizplus · Accepted Answer

Dividend yield is calculated by taking the sum of the dividends paid over the last four quarters and dividing it by the current stock price, then expressing that figure as a percentage. This provides investors with a measure of the income generated by each dollar invested in the stock.

Dividend Yield Is Defined as