A company paid an annual dividend of $.67 per share in 2018. The firm is expected...
A company paid an annual dividend of $.67 per share in 2018. The firm is expected to increase its dividend in 2019 and beyond by 2.50%. If you paid $21.95 per share for the stock in 2017, what is your dividend yield for 2019?
A. 3.05%
B. 3.14%
C. 2.96%
D. 2.50%
Hence: its not A OR C. I got it wrong.
Homework Answers
Annual dividend (2018) = $0.67
Annual dividend (2019) = $0.67 * 1.025 = $0.69
Dividend Yield = Annual Dividend / Current price
= $0.69/ $21.95
= 0.0314 or 3.14%
Option 'B' is correct
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