a) Capital appreciation of stock plus dividends received, divided by initial investment
b) Capital appreciation of stock less inflation rate, divided by initial investment
c) Capital appreciation of stock plus dividend received less inflation rate, divided by initial investment
d) Capital appreciation of stock plus dividends received, divided by sale amount of investment
correct answer is a)
For equity investments, the total return is:
Capital appreciation + dividends received
the example, the capital appreciation is $750 ($10,750-$10,000),
$250 ($1.00 multiplied by 250 shares), for a
total gain of $1,000. You then divide your total
($1,000) by the initial investment ($10,000)
for a total return
Learn about the difference between capital gains and other types of investment income, such as dividends paid on stock or ...
Learn to distinguish between those times when dividend yield or total return is a more useful performance metric for a company's ...
Learn how to differentiate between dividend yield and dividend return, and see why dividend yield is the more popular rate ...
Find out if stocks can pay dividends monthly, and learn about the types of companies most likely to do so and how monthly ...
The purpose of dividends is to return wealth back to the shareholders of a company. There are two main types of dividends: ...
Understand the basics of collecting dividend payments on ordinary shares, including when dividends can be paid and under ...
A rise in the value of an asset based on a rise in market price. ...
When measuring performance, the actual rate of return of an investment ...
The dividend yield that a share of stock would return based on ...
A dividend payment made in the form of additional shares, rather ...
An estimation of a year's dividend expressed as a percentage ...
1. Dividend income that is earned through an investment in stocks ...