You purchased a stock for $47.00 a share one year ago. Today you sold the stock for $50.21 a share and realized an 8.51% total rate of return. What was the dividend yield on this stock for the past year?

Question

Quizplus · Accepted Answer

The total return is composed of capital gains and dividend yield. The capital gain is ($50.21 - $47.00) / $47.00 = 6.83%. The total return is 8.51%, so the dividend yield is 8.51% - 6.83% = 1.68%.

You Purchased a Stock for $47