Dividend yield ________.
A)represents the annual sum of quarterly payments per share divided by the price per share
B)is not reflected in the stock price
C)should never be zero
D)All options are correct.

Question

Quizplus · Accepted Answer

Dividend yield is calculated by taking the annual sum of quarterly dividend payments per share and dividing it by the price per share. Therefore, option A represents the correct definition of dividend yield. Option B is incorrect as dividend yield is reflected in the stock price. Option C is also incorrect as there may be cases where a company does not pay any dividends and therefore the dividend yield would be zero.

Dividend Yield ________