Computing the Dividend and Yield of a Stock Investment
A stock dividend is money you receive as a shareholder of the company. The yield, expressed as a percentage of the price of the stock, is your annual return for holding a stock.
Example Find the total annual dividend and the annual yield to the nearest thousandth percent.
Morgana LeFey purchased 50 shares of company stock at $147.00 per share. The company paid annual dividends of $2.97 per share.
1. Find the total annual dividend. Total Annual Dividend Annual Dividend per Share Number of Shares $2.97 50 $148.50 total annual dividend
2. Find the annual yield. Yield Annual Dividend per Share Cost per Share $2.97 $147.00 2.020% yield
Find the annual yield.
Annual Divide per Share
Cost per Share
Al Holman purchased 75 shares of company stock at $37.75 per share. Last year the company paid annual dividends of $1.02 per share. What were Holman’s annual dividends? What was his annual yield?
Marybeth Evanston purchased 2,000 shares of airline stock at $3.15 per share. The company recently paid annual dividends of $0.09 per share. What are Evanston’s annual dividends? What is her annual yield?
Felix Capistrano bought 30 shares of oil stock at $45 per share. He recently read that the average selling price of his stock was $51.72. The company paid annual dividends of $1.15 per share last year. What is his annual yield? What would his annual yield be if he had bought the stock at its current average selling price?
Standardized Test Practice Robert Masterson bought 99 shares of stock at a price of $55 per share and 150 shares at $52 per share. The annual dividend per share was $1.27. What is
M a s t e r s o n ’ s a v e r a g e a n n u a l y i e l d ?
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