One year ago, you purchased a stock at a price of $32.50. The stock pays quarterly dividends of $.40 per share. Today, the stock is worth $34.60 per share. What is the total amount of your
Dividend income to date from this investment?

Question

Quizplus · Accepted Answer

Since the stock pays quarterly dividends of $.40 per share and you purchased it one year ago, you have earned 4 quarters of dividends.

4 quarters x $.40 per share = $1.60

Therefore, the total amount of your dividend income to date from this investment is $1.60.

One Year Ago, You Purchased a Stock at a Price