PJ S.
asked • 03/04/22MBA Financial management
If the stock price is $60 and the dividend payout is $6. What is the dividend yield?
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1 Expert Answer
Jill F. answered • 03/11/22
Tutor
5
(31)
19 yrs teaching finance to Rice U MBA students, Experienced CFA tutor
Dividend yield (given as a %) is calculated as follows:
Annual $ dividend paid / current $ stock price
So, for your example, the dividend yield is 10% = $6 dividends / $60 stock price
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Anouk U.
The Dividend Yield = (Annual Dividend Payout / Stock Price)*100. So for this example, the dividend yield would be ($6 / $60) *100 = 10%. We multiply by 100 to get it to a percentage. Also, you should know that Dividends are paid every quarter, so every 3 months. Hope that helps.03/11/22