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

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

Quizplus · Accepted Answer

Dividend yield is calculated as the annual dividends per share divided by the price per share. If the stock price increases while the dividend remains constant, the dividend yield actually decreases.

All Else Constant, an Increase in the Stock Price Will