Asked by
Joella Najarro
on Nov 13, 2024
Verified
On July 5, Winter Company had a market price of $58 per share of common stock. For the prior year, Winter Company had paid an annual dividend of $3.48 per share. What is the dividend yield for Winter Company?
A) 6.0%
B) 0.6%
C) 16.67%
D) 1.67%
Dividend Yield
An indicator that reveals the annual dividend payment of a company as a percentage of its stock price.
Market Price
This refers to the current price at which an asset or service can be bought or sold in a given market.
Annual Dividend
The total dividend payment a company makes to its shareholders in a fiscal year, often quoted as a rate per share.
- Compute and elucidate the significance of dividend yield in the context of investment evaluation.
Verified Answer
MS
Learning Objectives
- Compute and elucidate the significance of dividend yield in the context of investment evaluation.