Question

Vegan delite stock is valued at $68.60 a share. the company pays a constant annual dividend of $2.40 per share. what is the total return on this stock?

Answer 1

Answer:

The aggregate return on the stock is 3.5%

Explanation:

Aggregate return is the full return of the investment over the time. It involves all the dividends, capital gains and interest paid. It differs from the stock price growth due to dividends.

The aggregate return on the stock is computed as:

Aggregate return = Annual dividend / Stock value

where

Annual dividend is $2.40 per share

Stock value is $68.60

So, putting the values above:

Aggregate stock = $2.40 / $68.60

Aggregate stock = 3.49 % or 3.5%