How to Calculate Total Dollar Return on Your Investment

What is the total dollar return on an investment if 568 shares of stock were purchased a year ago for $27.59 a share, with a dividend of $0.88 per share annually, and then sold today for $24.89 a share?

After selling 568 shares of stock that were purchased a year ago for $27.59 per share, with a dividend of $0.88 per share annually, the total dollar return on this investment is a loss of $1,059.12.

Calculating the total dollar return on an investment involves considering the capital gain or loss from the difference in the purchase and selling prices, as well as the dividends received.

The initial investment was 568 shares bought at $27.59 per share, resulting in a total investment of $15,678.12. The dividends received annually would amount to $500.48.

Next, the selling value of the shares needs to be determined. With a selling price per share of $24.89, the total selling value comes to $14,118.52.

To calculate the capital gain or loss, subtract the total selling value from the initial investment: $14,118.52 - $15,678.12 = -$1,559.60, indicating a capital loss.

The total dollar return on this investment is the sum of the dividends received and the capital gain/loss. In this case, it would be $500.48 - $1,559.60 = -$1,059.12. Therefore, the total dollar return on this investment is a loss of $1,059.12.

Understanding how to calculate the total dollar return on your investment can help you make informed decisions and manage your finances effectively. Keep learning and growing your investment knowledge to achieve greater financial success!