Kayla purchased a stock for $56 a share and sold it six months later for $62. While she owned the stock, Kayla received two quarterly dividends of $0.70 per share. Kayla's annualized holding period return on this stock is

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Kayla's total return is the capital gain ($62 - $56 = $6) plus dividends ($0.70 * 2 = $1.40), totaling $7.40. The holding period return is $7.40 / $56 = 0.1321 or 13.21%. Since this return is for six months, the annualized return is 13.21% * 2 = 26.42%, approximately 26.4%.

Kayla Purchased a Stock for $56 a Share and Sold