Which one of the following correctly describes the dividend yield?
A) Next year's annual dividend divided by today's stock price
B) This year's annual dividend divided by today's stock price
C) This year's annual dividend divided by next year's expected stock price
D) Next year's annual dividend divided by this year's annual dividend
E) The increase in next year's dividend over this year's dividend divided by this year's dividend

Question

Quizplus · Accepted Answer

The dividend yield is calculated by taking the expected annual dividend per share for the next year and dividing it by the current market price per share.

Which One of the Following Correctly Describes the Dividend Yield