Asked by
alekya reddy
on Dec 09, 2024Verified
All else constant, an increase in the dividend amount will increase the dividend yield of a stock.
Dividend Amount
The total sum of money paid by a corporation to its shareholders, determined by multiplying the dividend per share by the total number of shares a shareholder owns.
Dividend Yield
The ratio of a company's annual dividend payments to its share price, expressed as a percentage, indicating the income investors receive in relation to the price of the stock.
- Fathom the impact that fluctuations in dividends, growth rates, and required returns exert on stock values.
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Learning Objectives
- Fathom the impact that fluctuations in dividends, growth rates, and required returns exert on stock values.