The dividend yield of the company will be 2.5%, given that dividend paid by company and current market price of the shares.
Given information:
Cash dividend paid = $1.1
Market price per share = $43.6
Dividend yield = cash dividend / Market price per share*100
= 1.1/ 43.6*100
= 2.5%
The amount of cash a company will pay stock holders for having owned a proportion of its stock divided by its present share value is recognized as the dividend yield, which is depicted as a percentage. The large percentage of fully developed companies pay dividends.
The dividend yields of companies in the consumer items and utility segments are commonly greater than the average. But it is not important that if a company have higher dividend yield then will attract higher investors.
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