Question

You bought 200 shares of OXY at $40.04 and then you bought 300 shares of OXY at 36.64 per share. Your overall dividend (annual) yield on this holding is 8%. Therefore, the Quarterly dividend paid per OXY share is

Answer 1

Dividend Yield = Total Dividend Received / Total Investment on Shares

Total Investment on Shares = (1st Share Price) * (Number of Shares) + (2nd share price) * (Number of Shares)

= (40.04) * (200) + (36.64) * (300)

= 19,000

Total Investment on shares is $19,000

Number of shares are = 200 + 300

= 500

Total Dividend Received on the investment = Dividend Yield * Total Investment

= 8% * 19,000

= 1,520

The total dividend of $1,520 is for the entire year, so quarterly will be = Annual Dividend / 4

= 380

The quarterly dividend of $380 is for 500 shares, now per share will be

= Total Quarterly dividend / Number of Shares

= 380 / 500

= 0.76

So per share quarterly dividend of OXY will be $0.76

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