(Rate of Return): Your client, Sally Safety, is interested in dividend aristocrats (securities that pay high regular dividends). Coca-Cola (Ticker: KO) is one of those securities. Suppose Sally instructed you to purchase 100 shares of Coca-Cola at the beginning of 2016 for a price of $35.69 per share. She is interested in selling the stock at the end of 2020 for $54.66. The dividend payments are as follows:

2016 $1.40

2017 $1.48

2018 $1.56

2019 $1.60

2020 $1.64

1. Before taxes and fees, calculate the average annual rate of return from dividends and capital gains?
2. If the S&P500 averaged an 8.00% annual rate of return, how did Sallys stock selection compare?