A stock currently sells for $63. The dividend yield is 3.6 percent and the dividend growth rate is 4.9 percent. What is the amount of the dividend to be paid in one year

Dividend in one year from now = $ 2.38

Explanation:

Dividend yield = Dividend / share price

DY = D/P

DY - 3.6%, D - Annual dividend, P - share price

3.6% = D/63

0.036 * 63 = D

2.268 = D

With a growth rate of dividend of 4.9%

Dividend to paid in one from now = Annual dividend * (1 + dividend growth rate)

Dividend in one year from now = 2.268 * (1.049) = 2.379132

Dividend in one year from now = 2.38