Dividend yield is the annual dividend paid by a company expressed as a percentage of the price of the stock (Dividend/Stock Price X 100). The dividend yield for the Dow Jones Industrial Average companies is shown in Table 2.15 (The Wall Street Journal, June 8, 2009).
1. Construct a histogram.
2. Comment on the shape of the distribution.
3. Construct a frequency distribution and percent frequency distribution.
4. What do the tabular and graphical summaries tell about the dividend yields between the Dow Jones Industrial Average companies?
5. What company has the highest yield? If the stock for this company currently sells for $20 per share and you purchase 500 shares, how much dividend income will this investment generate in one year?