What Is Dividend Yield? - Definition & Calculation


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question 1 of 3

Which of the following would be a reason for a stock's dividend yield to increase (assuming all other variables remained constant)?

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1. Thinking back to the dividend yield formula, which of the following would be a reason for a stock's dividend yield to decrease (assuming all other variables remained constant)?

2. Compute the dividend yield for a stock that pays a $2.50 annual dividend and has a current share price of $100.00.

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About This Quiz & Worksheet

Test what you know about dividend yield with this worksheet and quiz. The questions will assess your understanding of things such as a stock's dividend yield increase and decrease.

Quiz & Worksheet Goals

Use the these tools to:

  • Compute a dividend yield for a given stock that pays a $2.50 annual dividend and a price of $100
  • Find a dividend for a given stock with a price of $25 and a dividend yield of 5%
  • Identify the portfolio yield for a scenario with a dividend income of $4,500 and a portfolio value of $125,000

Skills Practiced

Practice the following study skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on dividend yield
  • Problem solving - use acquired knowledge to solve dividend practice problems
  • Interpreting information - verify that you can read information regarding a portfolio yield and interpret it correctly

Additional Learning

For more information, review the lesson called What is Dividend Yield? - Definition & Calculation. The lesson covers the following study objectives:

  • Define dividend yield
  • Apply how to calculate dividend yield in real life
  • Interpret stock values
  • Understand portfolio yield