All else constant, an increase in the dividend amount will increase the dividend yield of a stock.

Name: All else constant, an increase in the dividend amount will increase the dividend yield of a stock.
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Question

Quizplus · Accepted Answer

Dividend yield is calculated as the annual dividend per share divided by the stock's price per share. If the dividend amount increases while the stock price remains constant, the dividend yield will increase.

All Else Constant, an Increase in the Dividend Amount Will