Question

You bought a stock one year ago for $48.89 per share and sold it today for $56.05 per share. It paid a $1.53 per share dividend today. How much of the return came from dividend yield and how much came from capital gain? The return that came from dividend yield is? %. (Round to one decimal place.)

Answer 1

The return that came from the dividend yield is 17.6%.

Step-by-step explanation:

To find the amount of return that came from the dividend yield and the capital gain, we first need to calculate the gain in stock price and the dividend received.

The gain in stock price is calculated by subtracting the purchase price from the selling price: $56.05 - $48.89 = $7.16.

The dividend received is $1.53 per share.

The total return is the sum of the gain in stock price and the dividend received: $7.16 + $1.53 = $8.69.

To find the percentage of return that came from the dividend yield, we divide the dividend by the total return and multiply by 100: (1.53 / 8.69) * 100 = 17.6% (rounded to one decimal place).