Question

I bought shares for $49 and sold them for $56.

During 12 months my dividend fund made $2

1) What was my gain in dollars and percentage?

2)What was dividend yield?

3) What was my total return on investment?

Answer 1

Answer of Part 1:

Gain in Dollars = Sales Price – Purchase Price
Gain in Dollars = $56 - $49
Gain in Dollars = $7

Gain in Percentage = Gain / Purchase Price *100
Gain in Percentage = $7 / $49 *100
Gain in Percentage = 14.29%

Answer of Part 2:

Dividend Yield = Annual Dividend / Purchase price *100
Dividend Yield = $2 / $49 *100
Dividend Yield = 4.08%

Answer of Part 3:

Return on Investment = Gain in percentage + Dividend Yield
Return on Investment = 14.29% + 4.08%
Return on Investment = 18.37%