Question

You purchased a stock at a price of $48.01. The stock paid a dividend of $1.87...

You purchased a stock at a price of $48.01. The stock paid a dividend of $1.87 per share and the stock price at the end of the year is $54.01. What was the dividend yield?

  • 4.67%

  • 16.39%

  • 12.50%

  • 4.28%

  • 3.90%

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Answer #1

Dividend yield ratio = Dividend per share/Purchase price per share

= 1.87/48.01

= 3.90%

Correct option is (e)

Kindly comment if you need further assistance. Thanks

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