Francisca purchased 425 shares of Kellogg Company stock at $14.15 apiece. She earns $374.00 in dividends every year. What is the yield on Francisca's Kellogg Company stock?

Question

Patrick Terry

Mathematics

1 June, 11:07

Francisca purchased 425 shares of Kellogg Company stock at $14.15 apiece. She earns $374.00 in dividends every year. What is the yield on Francisca's Kellogg Company stock?

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Everett · Answer 1

Her yield on cost is 6.22%.

This is found by dividing the dividend per share by the cost per share. Since she earned $374 on 425 shares, her dividend per share is 374/425=$0.88. Divide this by the cost per share:

0.88/14.15 = 0.06219 ≈ 6.22%.