Which of the following statements is true of dividend yield?

A) When the dividend of a stock is subtracted from the par value,the result is the dividend yield.
B) When the market value of a stock is subtracted from the dividend,the result is the dividend yield.
C) When the dividend of a stock is divided by the price,the result is the dividend yield.
D) When the dividend of a stock is divided by the market cap,the result is the dividend yield.
E) When the capital of a stock is added to the dividend,the result is the dividend yield.

Question

Tammaron McClary · Accepted Answer

Final Answer : C, Explanation :  Dividend yield is calculated by dividing the annual dividends per share by the price per share. This gives investors an idea of the return they are getting on their investment from dividends alone.

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