What is the dividend yield of Tata motors having a face value of Rs. 10, market value of Rs.170 and an annual dividend of Rs.5?
To calculate the dividend yield, we can use the following formula:
Dividend Yield = (Annual Dividend per Share / Market Value per Share) x 100
Given values:
- Annual Dividend per Share = Rs. 5
- Market Value per Share = Rs. 170
- Face Value per Share = Rs. 10 (not required for dividend yield calculation)
Now, let's calculate the dividend yield:
Dividend Yield = (5 / 170) x 100
= 2.94%
So, the dividend yield of Tata Motors co.. is approximately 2.94%. This means that for every Rs. 100 invested in the stock, the investor can expect to receive a dividend of Rs. 2.94 per year.
*Note that face value is not required for calculating dividend yield, but it's often provided in financial statements.
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