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If a stock you buy is $50 per share and pays $2 per year in total dividends;
what is the dividend yield of the stock?*

Respuesta :

Samawati

Answer:

4%

Explanation:

Dividend yield shows the dividends paid out annually as a percentage of the share market price.

The formula for calculating dividend yield is the annual dividend per share/market value per share.

Dividend yield = dividend/ market share price x 100

Dividend yield = 2/50 x 100

Dividend yield = 0.04 x 100

Dividend yield = 4%

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