vocabulary
corporate income that is split among shareholders
dividend
stocks that usually pay a set dividend which is paid before the common stock dividend.
Stockholders are entitled to assets before common stockholders if the company goes out of business
preferred stock
If you purchase 700 shares at $45.16 per share, and the annual dividend is $2.13 per share.
What is your annual income for that stock?
700 x 2.13 = 1,491 so $1,491
You own a $57.40 stock in a toy company that pays an annual dividend of $1.40.
Determine the annual yield.
Yield = part/whole x 100
= 1.40/57.40 x 100 = 2.43%
A stock pays $2.14 annual dividend. The stock splits 2 for 1. What is the annual dividend after the stock splits?
2/1 x 1 = 2 twice as many shares.
Dividend should be _____ as much.
2.14 / 2 = $1.07.
money received from dividends.
dividend income
pay dividends when the board decides to issue them
common stock
You own 2,000 share of a corporation that pays quarterly dividends of $0.51 per share.
2,000 x 0.51 = 1,020
1,020 x 4 times per year = $4,080
Beepbeep pays an annual dividend of $1.20.
It closed today at 34.50, down $0.50.
Determine the stock’s yield at yesterday’s closing price
Yesterday’s closing price was
34.50 + .50 = 35.00
Yield = 1.20/ 35.00 x 100 = 3.4%
You own 1,500 shares of a $27.45/share stock that pays $1.51 dividend quarterly.
Determine the dividend payments.
$2,265 per quarter
stocks that pay dividends
income stocks
the stock of a small company that trades for less than $5 per share
penny stock
You own 1,500 shares of a $27.45/share stock that pays $1.51 dividend quarterly.
What is the annual dividend income from this stock?
$9,060.00
You own 1,500 shares of a $27.45/share stock that pays $1.51 dividend quarterly.
What is the yield for this stock?
5.5%
Years ago, Home Depot had an annual dividend of $0.90. If you owned 4,000 shares of Home Depot, how much did you receive annually in dividends?
$3,600
the percentage value of dividends compared to the current price per share
yield
The total number of shares of stock that are owned by investors.
outstanding stock
Sascha owns stock in Lewis Corporation and she bought a $1,000 corporate bond. The bond pays 6.34% annual interest. How much did Lewis Corp pay Sascha when the bond matured?
$1,000
The Walt Disney Company paid a $0.35 dividend on a day it closed at a price of $33.86 per share. What was the yield to the nearest tenth of a percent?
1.0%
Barnes and Noble had a $1.00 annual dividend during 2008. If you owned 500 shares of Barnes and Noble, how much did you receive quarterly on a dividend check?
$125
stock bought with the intention of selling at a higher price
growth stock
the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price
Market Capitalization
Roberta is considering purchasing a common stock that pays an annual dividend of $2.13 per share. If she purchased 700 shares for $45.16 per share, what would her annual income be from dividends?
$1,491
The Revreg Corporation pays an annual dividend of $1.60 per share. On Friday it closed at $44 per share with a net change of +0.35. The dividend did not change. What was the yield on Friday?
3.6%
The quarterly dividend for Tiffany, a jewelry company, was $0.17 during the second quarter of 2008. What was the annual dividend for 2,000 shares?
$1,360