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The next dividend payment by HG Enterprises will be $1.86 per share. The dividends are anticipated...

The next dividend payment by HG Enterprises will be $1.86 per share. The dividends are anticipated to maintain a 3.0 percent growth rate forever. The stock currently sells for $57.1 per share. What is the dividend yield? Provide your answer in decimal form, with at least three digits to the right of the decimal; for example 0.012.

Solutions

Expert Solution

Dividend yield=Dividend for next year/Current price

=1.86/57.1

which is equal to

=0.033(Approx)


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