Chartered Investment Manager (CIM) Practice Exam · Question
A Canadian investor, Sarah, is considering adding a Real Estate Investment Trust (REIT) to her TFSA. She is evaluating a REIT that trades on the TSX and distributes $0.75 per unit annually. If the current unit price is $15.00, what is the annual dividend yield of this REIT?
The annual dividend yield is calculated by dividing the annual distribution per unit by the current unit price. In this case, $0.75 / $15.00 = 0.05, or 5.00%. R
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Question: A Canadian investor, Sarah, is considering adding a Real Estate Investment Trust (REIT) to her TFSA. She is evaluating a REIT that trades on the TSX and distributes $0.75 per unit annually. If the current unit price is $15.00, what is the annual dividend yield of this REIT?
Answer options:
- 3.50% ✅ 5.00%
- 7.50%
- 10.00%
Correct answer: 5.00%
Explanation: The annual dividend yield is calculated by dividing the annual distribution per unit by the current unit price. In this case, $0.75 / $15.00 = 0.05, or 5.00%. REITs are popular for their income-generating potential.
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