If a stock pays dividends at the end of each quarter, with returns R1, R2, R3, and R4 each quarter, then its annual return is calculated as follows:

Rannual = (1 + R1)(1 + R2)(1 + R3)(1 + R4) Rannual = (1 + R1)(1 + R2)(1 + R3)(1 + R4) - 1 Rannual R1 + R2 + R3 + R4 4 Rannual = R1 + R2 + R3 + R4