The total rate of return on a stock can be positive even when the price of the stock depreciates because of the:

Question

Quizplus · Accepted Answer

Even if the price of a stock decreases, the stock can still provide a positive total rate of return through its dividend yield. Dividend yield is the annual dividend payments divided by the stock price, and if the dividend payments are enough to offset the decrease in price, the total return can still be positive.

The Total Rate of Return on a Stock Can Be