Your investment goal is to receive a stream of income from your investment.Which of the following would be important information to determine whether a particular stock purchase would suit your plan?

Question

Quizplus · Accepted Answer

The dividend yield is the percentage of the stock's current price that is paid out in dividends to shareholders. As the investment goal is to receive a stream of income, the dividend yield is the most important factor to consider. Earnings per share, market-to-book ratio, and book value are not necessarily indicative of a stock's ability to provide a consistent stream of income.

Your Investment Goal Is to Receive a Stream of Income