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General Stock Investment Strategies/Stock dividends and dividend yields

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Question
I want to buy stock to earn dividends and I want to buy 100 shares of ASBI,the stock is $9.20 per share,their market cap is 27.5M,dividend yield is 0.43%,3.0M outstanding shares,and the dividend yield is quarterly at 0.01,- so can you tell me how this works so I can figure it myself next time? and about how much will the dividend be quarterly?

Answer
Hi Raymond,

A stock's current yield is the annual dividend divided by the current price.  If have have a quarterly dividend, you need to multiply it by four and then divide by the current price. They give you the quarterly amount (.01) as well as the current yield (.43%)

In this case, .01 x 4 = .04

.04/9.2 = .0043

.0043 x 100 = .43%

I hope this helps.

Michael Weiss, CFA
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General Stock Investment Strategies

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Michael Weiss, CFA

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I can answer most questions about stock investment strategies, especially those related to value and growth

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I am the owner of Series 7 Exam Tutor , a financial tutoring business that provides personalized tutoring for the Series 7 Exam, the Series 6 Exam ,the Series 65 Exam, the Series 66 Exam, the Series 63 Exam and the Series 24 Exam . I also offer tutoring for finance courses. For additional information, please visit, Finance Exam Tutor. Prior to launching Series 7 Exam Tutor, I worked in investments for 20 years with the majority of this time focused on investment analysis and portfolio management. I have worked for large companies such as Merrill Lynch and Evergreen Investments and have also worked for smaller firms as well. Throughout my career, I have sought to mentor younger colleagues whenever possible, especially those enrolled in the CFA program. I completed the CFA program in 2002 after passing all three exams on the first try. I also passed the Series 7 Exam with a score of 94%. For additional information about me, you can visit the links below:
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