To analyze your stock investment, let's calculate the dividend yield, capital gains yield, dollar return, and rate of return step-by-step.

1. Dividend Yield

The dividend yield is calculated as follows:

$\text{Dividend Yield} = \frac{\text{Annual Dividend per Share}}{\text{Purchase Price per Share}}$

$\text{Dividend Yield} = \frac{2.34}{104.32} \approx 0.0224 \text{ or } 2.24\%$

2. Capital Gains Yield

The capital gains yield is calculated by determining the price appreciation:

$\text{Capital Gains Yield} = \frac{\text{Ending Price} - \text{Beginning Price}}{\text{Beginning Price}}$

$\text{Capital Gains Yield} = \frac{113.65 - 104.32}{104.32} \approx 0.0895 \text{ or } 8.95\%$

3. Dollar Return

The dollar return includes both the dividends received and the capital gains:

$\text{Dollar Return} = (\text{Ending Price} - \text{Beginning Price}) \times \text{Number of Shares} + (\text{Annual Dividend per Share} \times \text{Number of Shares})$

Calculating this step by step:

• Capital Gains: $(113.65 - 104.32) \times 250 = 9.33 \times 250 = 2332.50$
• Dividends: $2.34 \times 250 = 585$

$\text{Dollar Return} = 2332.50 + 585 = 2917.50$

4. Rate of Return

The rate of return is the total return (dollar return) relative to the initial investment:

$\text{Rate of Return} = \frac{\text{Dollar Return}}{\text{Initial Investment}}$

$\text{Initial Investment} = 250 \times 104.32 = 26080$

$\text{Rate of Return} = \frac{2917.50}{26080} \approx 0.1118 \text{ or } 11.18\%$

Summary of Results

• Dividend Yield: 2.24%
• Capital Gains Yield: 8.95%
• Dollar Return: $2,917.50
• Rate of Return: 11.18%

If you have any questions or need further details, feel free to ask! Here are some related questions you might consider:

1. How would changes in stock price affect your capital gains yield?
2. What factors influence dividend payments from a company?
3. How do you calculate the total return on a portfolio of stocks?
4. What risks are associated with investing in stocks?
5. How does inflation impact the real rate of return?

Tip: Always consider both dividends and capital gains when evaluating stock performance to get a complete picture of your investment return.