A company has a stock price of $32.35 per share. The last dividend was $3.42 (D0 = $3.42). The long-term growth rate for the company is a constant 7 percent. What is the company\'s dividend yield? Solution Current Stock Price = $32.35 Long Term Growth rate = 7% D0 = 3.42 D1 = 3.42(1.07) = 3.6594 Dividend Yield = Dividend / Market Price = 3.6594 / 32.35 = 11.31%.