A stock which was bought for $1,000 pays annual dividends of $250.The first quarter dividend yield of the stock can be calculated at

Question

Quizplus · Accepted Answer

The dividend yield for the first quarter is calculated by taking the quarterly dividend ($250 annual dividend divided by 4 = $62.50 for the quarter) and dividing it by the stock purchase price ($1,000), then multiplying by 100 to get a percentage. This results in a 6.25% dividend yield for the first quarter ($62.50 / $1,000 * 100 = 6.25%).

A Stock Which Was Bought for $1,000 Pays Annual Dividends