Dawson, Inc., paid a dividend of $0.65 per share last year. If the stock selling price of the stock is $25.12, what is the current yield on the stock? Round your answer to the nearest tenth percent
To find the current yield on the stock, we need to divide the annual dividend by the stock's current selling price and then multiply by 100 to express it as a percentage.
1. Calculate the current yield formula: Current Yield = (Dividend / Stock Price) * 100.
2. Plug in the given values: Dividend = $0.65 per share, Stock Price = $25.12.
Current Yield = (0.65 / 25.12) * 100.
3. Solve the equation: Current Yield = 2.58757495.
4. Round the answer to the nearest tenth percent: Current Yield ≈ 2.6%.
Therefore, the current yield on the stock is approximately 2.6%.