The dividend yield is the cash dividend divided by the current market price of the stock.

Name: The dividend yield is the cash dividend divided by the current market price of the stock.
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Question

Quizplus · Accepted Answer

The dividend yield formula is calculated by dividing the annual cash dividends per share by the current market price of the stock. This gives investors an idea of how much cash flow they can expect to receive relative to the price they paid for the stock.

The Dividend Yield Is the Cash Dividend Divided by the Current