In the beginning of 2009, you pay $100 for a share of stock that pays you a dividend of $1 at the beginning of 2010. If the stock price rises from $100 to $109 per share over the year:

Question

Quizplus · Accepted Answer

The total return is the dividend plus the capital gain. The dividend is $1, and the capital gain is $109 - $100 = $9. The total return is $1 + $9 = $10. The rate of return is $10/$100 = 10%.

In the Beginning of 2009, You Pay $100 for a Share