What dividend yield would be reported in the financial press for a stock that currently pays a $1 dividend per quarter and the most recent stock price was $40?
A)2.5 percent
B)4.0 percent
C)10.0 percent
D)15.0 percent

Question

Quizplus · Accepted Answer

The annual dividend is $1 per quarter x 4 quarters = $4. The dividend yield is calculated as (Annual Dividend / Stock Price) x 100 = ($4 / $40) x 100 = 10.0 percent.

What Dividend Yield Would Be Reported in the Financial Press