Investments 12.5 Stock Dividends.

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Presentation transcript:

Investments 12.5 Stock Dividends

Vocabulary & Formulas Dividend – the money earned as a shareholder of the company without selling the stock; in other words it provides shareholders with a regular income on their investment 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑇𝑜𝑡𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 = 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 × # 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒𝑠 𝐴𝑛𝑛𝑢𝑎𝑙 𝑌𝑖𝑒𝑙𝑑= 𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 Remember: The higher the yield, the greater the return

Find the total annual dividend Chris owns 400 shares of QT Press. Purchase price was $55.99 a share and dividends are $1.52 per share. Find the total annual dividend 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑇𝑜𝑡𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 = 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 × # 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒𝑠 1.52 × 400 $608.00 Find the annual yield to the nearest hundredth of a percent 𝐴𝑛𝑛𝑢𝑎𝑙 𝑌𝑖𝑒𝑙𝑑= 𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 1.52 55.99 2.71%

1.34 49.88 Find the total annual dividend 1.34 × 150 $201.00 Joy owns 150 shares of Velvet Design stock that has a high of $49.88 and a low of $32.64 during the year. The annual dividend was $1.34. Find the total annual dividend 1.34 × 150 $201.00 Find the annual yield based on the low 1.34 32.64 4.11% Find the annual yield based on the high 1.34 49.88 2.69%

$100.99 $100.99 $4.99 $4.99 8.98% 8.98% 2.06% 2.06% Questions/Review Remember always round money to the hundredth On this lesson we will be rounding our percent's to the hundredth, but after you change to a percent. $100.99 $100.99 $4.99 $4.99 8.98% 8.98% 2.06% 2.06%