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suppose you bought 200 shares of stock at an initial price of $57 per share. the stock paid a dividend of $.36 per share during the following year, and the share price at the end of the year was $61.

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You bought 200 shares of stock at an initial price of $57 per share. During the following year, the stock paid a dividend of $.36 per share, and the share price at the end of the year was $61.


To calculate your total return, you need to add up the dividend income and the capital gain from the increase in share price.


Dividend income = 200 shares x $.36 per share = $72

Capital gain = (200 shares x $61) - (200 shares x $57) = $800

Total return = $72 + $800 = $872

Therefore, your total return for the year was $872. This includes $72 in dividend income and $800 in capital gain from the increase in share price.