Question

You purchased 300 shares of Samuel, Inc. stock for $44.90 a share. You have received a total of $630 in dividends and $12.460 in proceeds from selling the shares. 1. What is your total (rate of) return on this stock? II. What is your capital gains yield on this stock? II. What is your dividend yield on this stock

Answer 1

Total return received = dividends received + total proceeds received

= $630 + $12.460 = $642.46

1. Rate of Return = ($642.46/ ($44.9 * 300))*100 = 4.77%(approx.)

2. Capital gains Yield = ($12.460 / $13470)*100 = 0.092%(approx.)

3. Divident Yield = ($630 /13470)*100=4.677% (approx.)

NOTE: Assuming $12.46 overall return on 300 shares on sale as it is written "in proceeds of selling the shares"

If $12.46 is profit for sale of 1 share only then muliply it with 300 in each calculation i.e, 12.46 * 300 = $3738

Replace $12.460 with $3738 ( in case if 12.46 is profit for one share on sale )