On year ago, i purchased 100 shares of stock for $38 a share. The stock pays dividends of $0.2 per share quarter. Today, i sold my shares for $40.5 a shares.
2007-09-09 07:13:34 · 1 answers · asked by krystalemeka 1 in Business & Finance ➔ Other - Business & Finance
The simplest way is to take the price appreciation plus the income earned from it. Dividends of $0.20 per share per quarter gives $20 per quarter, $80 in the one year you held them. You sold them for 100 x $40.50 or $4,050. You paid $3,800 for them, so your capital gain was $250. So in your one year you got $250 + $80 or $330 out of your $3,800 investment, or 8.68%. But this does not take into account your opportunity cost - what you would have made if you had put your $3,800 elsewhere, but I will not complicate the issue for you.
2007-09-10 01:33:44 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋