Graham plc has the following information for the year to 30 June:
Profit for the year : £4.2m
Ordinary dividend paid : £1.8m
Number of ordinary shares: 18m
Market price at 30 June : £2.90
Calculate the dividend yield for Graham plc.

Question

Quizplus · Accepted Answer

The dividend yield is calculated as (Dividend per share / Market price per share) * 100. Dividend per share is £1.8m / 18m shares = £0.10. Thus, the yield is (£0.10 / £2.90) * 100 = 3.4%.

Graham Plc Has the Following Information for the Year to 30