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What is my total dollar return on this investment? |
On year ago, i purchased 100 shares of stock for $38 a share. The stock pays dividends of $0.2 per share quarter. Today, i sold my shares for $40.5 a shares. The simplest way is to take the price appreciation plus the income earned from it. Dividends of $0.20 per share per quarter gives $20 per quarter, $80 in the one year you held them. You sold them for 100 x $40.50 or $4,050. You paid $3,800 for them, so your capital gain was $250. So in your one year you got $250 + $80 or $330 out of your $3,800 investment, or 8.68%. But this does not take into account your opportunity cost - what you would have made if you had put your $3,800 elsewhere, but I will not complicate the issue for you. |
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