Payment of a dividend usually affects stock prices because control of the money used for the dividend is transferred to the company’s shareholders, meaning money out of the hands of the company and into the hands of the investors.What is the dividend yield on a stock?
Dividend yield is a financial ratio that shows how much a company pays out in dividends each year in relation to its share price. Dividend yield is shown as a percentage. It's calculated by dividing the dollar value of dividends paid in a certain year per share of stock held by the dollar value of one share of stock.Do stock options pay dividends?
Options don't pay actual dividends. First, it's important to understand that in strict terms, options don't pay dividends. Even if you own an option to purchase stock, you don't receive the dividends that the stock pays until you actually exercise the option and take ownership of the underlying shares.