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29 June, 22:23

One year ago, you purchased a stock at a price of $19 a share. You recently received an annual dividend of $1.2 a share. Today, you sold the stock for $17 a share. What is your dividend yield on this investment?

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  1. 29 June, 23:38
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    6.32%

    Explanation:

    Data provided in the question

    Purchase price of share = $19 per share

    Annual dividend per share = $1.20

    Selling price per share = $17 per share

    So, by considering the above information

    The formula and the dividend yield on this investment is shown below:

    = (Annual Dividend per share) : (Initial price per share) * 100

    = $1.20 : $19 * 100

    = 6.32%
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