A stock currently sells for \( \$ 79 \). 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?

To find the dividend amount to be paid in one year, we can use the formula for dividend yield: \[ \text{Dividend Yield} = \frac{\text{Dividend}}{\text{Stock Price}} \] Rearranging that to find the dividend gives us: \[ \text{Dividend} = \text{Dividend Yield} \times \text{Stock Price} \] Now, substituting in our values: \[ \text{Dividend} = 0.036 \times 79 = 2.844 \] Thus, the amount of the dividend to be paid in one year is approximately \( \$2.84 \). To keep your investing spirit high, remember that dividends are like little gifts from companies for being a loyal shareholder! These can be reinvested into buying more stock, effectively making your money work even harder for you over time. Think of it as planting seeds today for a bountiful harvest in the future! And don’t forget, as companies grow, so do their dividends, thanks to those growth rates you're seeing! Understanding how these rates affect your earnings is key to mastering the investment game. So, check back on those dividends regularly, so you stay ahead of the curve!