Assume that you have been given the responsibility to invest some funds in the stock market to provide an annuity to an individual who has just retired Explain how you might use the dividend yield and the dividend payout ratio to help you with this investment decision ...

For someone retiring an annual in ...

Assume that you have been given the responsibility to invest some funds in the stock market to

Question:

Assume that you have been given the responsibility to invest some funds in the stock market to provide an to an individual who has just retired. Explain how you might use the yield and the payout ratio to help you with this investment decision.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...