Question

What does the term 'dividend yield' signify for an

Q: Answer-What does the term 'dividend yield' signify for an investor in the equity market?

The annual dividend paid as a percentage of the stocks market price. Dividend yield is a measure of the return on investment provided by way of dividend payouts by a company. It is calculated by dividing the annual dividend paid per share by the current market price of the stock, expressed as a percentage.

investor in the equity market?

A The annual dividend paid as a percentage of the stock’s face value

B The annual dividend paid as a percentage of the stock’s market value

C The annual interest paid to bondholders as a percentage of the company’s market value

D The rate of return on investment for newly issued shares

E The growth in the company’s stock price over a year.

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What does the term 'dividend yield' signify for an

Solution