A certain stock pays dividends of \( \$ 0.39 \). How much would you receive if you owned 60 shares? Round your answer to the nearest cent, if necessary. Answer

If you owned 60 shares of the stock, you would receive dividends calculated by multiplying the dividend per share by the number of shares. So, you would calculate \( 0.39 \times 60 \), which equals \( 23.40 \). Therefore, you would receive \( \$23.40 \) in dividends. Understanding dividends is crucial for investors who seek passive income from their investments. Dividends can be a reliable income stream, especially for those who invest in dividend-paying stocks. Keep in mind that companies can change their dividend policies based on their financial performance and goals, so it’s wise to stay informed! If you're considering investing in stocks, it's important to assess not just the dividends but also the company's overall financial health. Look at metrics like earnings per share (EPS), payout ratios, and industry trends. A common mistake investors make is focusing solely on dividend yield without considering the sustainability of those dividends in the long run.