If a stock has a quarterly dividend of $.50 and a stock price of $100, what is the current dividend yield?

To calculate the dividend yield, you take the annual dividends per share and divide it by the stock price.

In this scenario, the stock pays a quarterly dividend of $0.50. To find the annual dividend, you multiply the quarterly dividend by 4 (since there are four quarters in a year):

Annual dividend = $0.50 * 4 = $2.00.

Next, to find the dividend yield, you divide the annual dividend by the stock price. The stock price is $100, so:

Dividend yield = Annual dividend / Stock price = $2.00 / $100 = 0.02 or 2%.

This means that the correct answer reflects the return an investor would earn from holding the stock based on its current dividend payments relative to its price, which is an important measure for investors looking for income-generating investments.