How is the dividend yield calculated?
A) the dividend of a stock is subtracted from the par value
B) the market value of a stock is subtracted from the dividend
C) the dividend of a stock is divided by the price
D) the dividend of a stock is divided by the market cap
E) the capital of a stock is added to the dividend

Question

Quizplus · Accepted Answer

When the dividend of a stock is divided by the price, the result is the dividend yield. The dividend yield is the cash return as a percentage of the price but does not reflect the total return an investor earns on the individual stock.

How Is the Dividend Yield Calculated