A stock’s ______ is found by dividing the stock’s annual dividend by its closing price.

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22-07-2022
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A stock’s ______ is found by dividing the stock’s annual dividend by its closing price.

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smecloudbird17 smecloudbird17 · Answer 1 · 2022-08-03T21:30:25+02:00

A stock’s current yield is found by dividing the stock’s annual dividend by its closing price.

Current yield refers to an investment's annual income divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its face value. The current yield is equal to the stocks annual interest earned divided by the current price of the bond.

The current yield can also be calculated by taking the dividends received for a stock and dividing that amount by the stock's current market price.

Hence, current yield refers to the income you receive from a bond dividend by its current market price, and expressed as a percentage.

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