Seven months ago, you purchased 300 shares of Stadford, Inc. stock at a price of $48.30 a share. The company pays quarterly dividends of $.40 a share. Today, you sold all of your shares for $45.20 a share. What is your total percentage return on this investment?

Question

Quizplus · Accepted Answer

The total return includes both capital loss and dividends received. The capital loss is ($45.20 - $48.30) * 300 = -$930. The total dividends received over 7 months (2 quarters) is $0.40 * 300 * 2 = $240. The total return is (-$930 + $240) = -$690. The percentage return is (-$690 / ($48.30 * 300)) * 100 = -4.8%.

Seven Months Ago, You Purchased 300 Shares of Stadford, Inc