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 $1 dividend per quarter = $4 annually

Question

Quizplus · Accepted Answer

The annual dividend is $4 ($1 per quarter x 4 quarters). The dividend yield is calculated as the annual dividend divided by the stock price: $4 / $40 = 0.10 or 10.0 percent.

What Dividend Yield Would Be Reported in the Financial Press