A share of stock trades at $131. The stock paid four dividends of $1.37 every quarter...

Question

Question

A share of stock trades at $131. The stock paid four dividends of $1.37 every quarter over the last 12 months.

What is the dividend yield?

business finance

Answer 1

Answer #1

The dividend yield = Annual Dividend / Stock Price *100

= ( $ 1.37 * 4) / $ 131 * 100

= 4.183206107%

Hence the correct answer is 4.18%

Answer 2

Similar Homework Help Questions

You bought a stock four months ago for $75.32 per share. The stock paid no dividends. The...

You bought a stock four months ago for $75.32 per share. The stock paid no dividends. The current share price is $78.34.Required:What is the APR and EAR of your investment? (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)InvestmentAPR= %EAR= %
Four years ago, Bling Diamond, Inc., paid a dividend of $1.85 per share. The company paid...

Four years ago, Bling Diamond, Inc., paid a dividend of $1.85 per share. The company paid a dividend of $2.27 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 7 percent per year. What will the company’s cash dividend be in seven years?
The Napa Co. just paid a dividend of $3.15 per share on its stock. The dividends...

The Napa Co. just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. If investors require a return of 12 percent on the stock, what is the current price? What will the price be in four years?

Problem1: The XYZ Co. just paid a dividend of $1.95 per share on its stock. The...

Problem1: The XYZ Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. Assume investorsrequire a return of 10.5 % on the XYZ Co. stock. What will the price be in 3 years? Show yourwork/calculations Problem2: The ABCorp. paid an annual dividend of $1.37 a share last month. Today, the company announced that future dividends will be increasing by 2.8 percent annually. If...
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock...

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next four years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $12 per share 5 years from today and will increase the dividend by 5 percent per year thereafter. Required: If the required return on this stock is 12 percent, what is the current share price?
You purchased a share of stock for $76. At the end of a quarter, the stock...

You purchased a share of stock for $76. At the end of a quarter, the stock paid a dividend of $0.75, and you sold it for $77 right after receiving the dividend. What was your dividend yield? Round your answer to the nearest tenth of a percent. O none of the choices 0 1.0% 0 1.1% o 0.9%

If Negan Corp. common stock is valued at $40 per share, dividends are paid quarterly and...

If Negan Corp. common stock is valued at $40 per share, dividends are paid quarterly and expected to grow quarterly by 1.2% forever, and the next dividend is due in 3 months and expected to be $3, then what is the expected annual return on Negan Corp. stock?
An Internet company earned $7.20 per share and paid dividends of $5.60 per share. The company...

An Internet company earned $7.20 per share and paid dividends of $5.60 per share. The company reported a dividend yield of 5 percent. What was the price of the stock? Price of the stock
A preferred stock is expected to pay every quarter into indefinite future, the following dividend yield,...

A preferred stock is expected to pay every quarter into indefinite future, the following dividend yield, dented by DY: DY = The annual yicld on 10-year GỌC bond, prevailing at the time of payment + 4% The par value of the preferred stock is $100. Suppose the annual yield on 10-year GOC bond is expected to be as: 1.5% at the end of the first quarter, 2% at the end of the 2 quarter, 2.5% at the end of the...

The Brennan Co. just paid a dividend of $2.50 per share on its stock. The dividends...

The Brennan Co. just paid a dividend of $2.50 per share on its stock. The dividends are expected to grow at a constant rate of 7% per year indefinitely. Brennan Co. investors require a 12% return on their stock. a. What is the current price of a share of Brennan Co. Stock? b. What will be the price of a share in of Brennan Co. Stock in 5 years? c. What will be the price of a share of Brennan...