Beaufort Corp. stock currently sells for $50 per share? The annual dividend payment is $2.00 per share and earnings per share are $6.00. The dividend yield is_______ and the dividend payout ratio is______ .

Question

Quizplus · Accepted Answer

The dividend yield is calculated as the annual dividend payment divided by the stock price, which is $2.00 / $50 = 0.04 or 4%. The dividend payout ratio is calculated as the annual dividend payment divided by the earnings per share, which is $2.00 / $6.00 = 0.333 or 33%.