The Walt Disney Company paid a 0.35 annual dividend on a...

The Walt Disney Company paid a $\$ 0.35$ annual dividend on a day it closed at a price of $\$ 33.86$ per share. a. What was the annual dividend for 500 shares? b. What was the quarterly dividend for 500 shares? c. Express the yield as a fraction. d. What was the yield to the nearest tenth of a percent?

The Walt Disney Company paid a $\$ 0.35$ annual dividend on a day it closed at a price of $\$ 33.86$ per share.
a. What was the annual dividend for 500 shares?
b. What was the quarterly dividend for 500 shares?
c. Express the yield as a fraction.
d. What was the yield to the nearest tenth of a percent?

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Key Concepts

Dividend

A dividend is a distribution of a portion of a company's earnings to its shareholders. It is typically declared on a per-share basis, meaning each share of stock receives a fixed dividend amount regardless of the total number of shares an investor holds.

Annual Dividend Calculation

The annual dividend is calculated by multiplying the dividend per share by the total number of shares owned. This calculation is crucial for investors to understand the total cash flow they can expect from holding a particular stock over the course of a year.

Quarterly Dividend Calculation

When dividends are paid quarterly, the annual dividend is divided by four to determine the amount distributed in each quarterly payment. This concept is important for investors who rely on periodic payments and need to understand the timing and amount of returns.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is calculated by dividing the annual dividend by the stock's price per share, and is often expressed as a fraction or percentage, providing a measure of the return on investment from dividends alone.

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