Given the following information, calculate the dividend yield. Quarterly dividend: $0.50 per share Current share price: $20.00
Question
Given the following information, calculate the dividend yield.
- Quarterly dividend: $0.50 per share
- Current share price: $20.00
Solution
Sure, here's how you can calculate the dividend yield:
Step 1: First, you need to calculate the annual dividends paid per share. Since the company pays a quarterly dividend of $0.50, you would multiply this amount by 4 (since there are 4 quarters in a year).
0.50 * 4 = $2.00
So, the annual dividend is $2.00 per share.
Step 2: Next, you need to divide the annual dividend by the current share price and then multiply the result by 100 to get the dividend yield as a percentage.
(2.00 / 20.00) * 100 = 10%
So, the dividend yield is 10%.
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