Asked by Jalyn Lankford on May 05, 2024
Verified
Winslow, Inc. stock is currently selling for $40 a share. The stock has a dividend yield of 3.8%. How much dividend income will you receive per year if you purchase 500 shares of this stock?
A) $152
B) $190
C) $329
D) $760
E) $1,053
Dividend Yield
A company's yearly dividend disbursement compared to its stock price, shown as a financial ratio.
Dividend Income
Income received from owning shares of stock in a company, usually paid out from the company's profits to shareholders at regular intervals.
Shares
Portions of ownership in a corporation, representing a claim on part of its assets and earnings.
- Determine the amount of dividend income by applying the dividend yield to the quantity of shares owned.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
D
Explanation :
The dividend yield is a percentage of the stock price that represents the dividend payment. To find the annual dividend per share, multiply the stock price by the dividend yield: $40 * 3.8% = $1.52 per share. For 500 shares, the annual dividend income is 500 * $1.52 = $760.
Learning Objectives
- Determine the amount of dividend income by applying the dividend yield to the quantity of shares owned.