What is the dividend yield on company XYZ stock?

For example, let's assume you own 500 shares of Company XYZ, which pays $1.10 per share in annual dividends. If the current stock price is $12.00, then using the formula above we can calculate that the dividend yield on Company XYZ stock is: $1.10 / $12.00 = .0916 = 9.2% note that there is an inverse relationship between yield and stock price.

How much is a put in XYZ stock?

But since you’re collecting $2 for the put, your net cost for the stock would be $58 per share (plus commissions and fees) if you are assigned. It’s true that if XYZ stock happened to pay a dividend, then by owning XYZ you’d be entitled to that dividend. By being short a put in XYZ stock, on the other hand, you would not be entitled to a dividend.

How does company XYZ sell shares?

Company XYZ hires an investment bank to underwrite the offering, register it with the SEC and handle the sale. The company receives the proceeds from the sale of the shares. Generally, a company can register a shelf offering up to three years in advance, meaning that it has that long to sell the shares.