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Pretend you bought 200 shares of stock at $35 per share. You received a dividend on the stock of $0.50 per share during the following
Pretend you bought 200 shares of stock at $35 per share. You received a dividend on the stock of $0.50 per share during the following year, and the price per share at the end of the year was $40. What is the total dollar return on this investment? Does your answer change if you keep the stock instead of selling it? Why or why not? What is the capital gains yield? What is the dividend yield? What is the total rate of return on the investment?
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