How to Calculate the Performance of a Stock That Has Dividends

by Michael Keenan ; Updated April 19, 2017
Dividends play a key role in many stock portfolios.

If your stock's price per share does not increase, or even decreases, you may still make a profit if the stock pays dividends. When measuring the performance of a stock that pays dividends, if you do not account for the dividends, you do not get a true picture of the return. When measuring the return of a stock that pays dividends, you can measure return as a dollar figure or a percentage of the purchase price.

Step 1

Subtract the initial price of the stock from the ending price. If your answer is negative, your stock decreased in value. For example, if you bought a stock for $35 and sold it for $32, you lost $3.

Step 2

Add any dividends paid by the stock while you owned it. In this example, if the stock paid $1.20 in dividends, add $1.20 to $-3 to get $-1.80.

Step 3

Divide the gain or loss after accounting for dividends by the purchase price to find the rate of return. In this example, divide $-1.80 by $35 to get -0.0514, or a loss of 5.14 percent.

References

About the Author

Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

Photo Credits

  • Jupiterimages/Goodshoot/Getty Images
bibliography-icon | raiffeisen-cards.ru icon for annotation tool Cite this Article

Related pages


scholarships for elementary students in private schoolbelk credit card paymentsdonate washer dryeraaa college scholarshipspretax cost of debt formulacivil summons response lettervisa credit card expiration datefidelity freedom k 2020magnetic strip protectormcas scholarshipscholarships for moms returning to collegedo i need to file a 1099 miscrequest for reinstatement letter samplesalvage title inspection ohiocashing postal money orderslienholder car titlewhat is a levy on bank accountwalgreens pharmacy scholarshipunion dues deductiblehow to get a repo off your credittax implications of inheriting moneyinstallment loan payment formulasavings bond series ee valuenc capital gains taxwhat does bonded title mean in texascustomized debit cards bank of americahow to fill out a money order from currency exchangedividend revenue definitionmass health income guidelinesgreen dot mastercard balancehow to calculate consumer surplus from a graphcan someone else pay your traffic ticketcompare and contrast debt and equity financingwhat happens to 2nd mortgage after foreclosuregrants for homeschoolersbankruptcy security clearancemailing address for equifax credit bureaugarnishment rules ontariosubordinated debt financingcsl plasma timesis preschool tax deductiblecash flow to shareholders formulamarginal utility calculationwhat is the difference between qualifying for loans and grantsasset coverageaddressing an envelope with attnoverdraft penaltycan i deduct medicare part b premiumsmy esurance accountconsolidating medical billssalaried non-exemptlump sum annuity formulahow to sell stocks on etradehud housing qualificationsw 4 exemption calculatorhow do i fill out a moneygram money orderdebt to net worth ratio calculatormoney market taxableunfinanced capexcalculate expected return with betafree paralegal training onlinecalculate acvwhere do banks sell repossessed housescheap insulin pen needlespost closing trial balance containschicago christian collegeswalmart vision appointmentlandlord won t renew leasetelevision donation pickupcashing in annuityamica insurance agentscan you get cash back on ebt cardspos pre-authorizationopm cost of livingprofit sharing vs 401kvariable contribution marginsalvation army tax donation formhomeowner covenantscatholic charities help with rent

Related pages


scholarships for elementary students in private schoolbelk credit card paymentsdonate washer dryeraaa college scholarshipspretax cost of debt formulacivil summons response lettervisa credit card expiration datefidelity freedom k 2020magnetic strip protectormcas scholarshipscholarships for moms returning to collegedo i need to file a 1099 miscrequest for reinstatement letter samplesalvage title inspection ohiocashing postal money orderslienholder car titlewhat is a levy on bank accountwalgreens pharmacy scholarshipunion dues deductiblehow to get a repo off your credittax implications of inheriting moneyinstallment loan payment formulasavings bond series ee valuenc capital gains taxwhat does bonded title mean in texascustomized debit cards bank of americahow to fill out a money order from currency exchangedividend revenue definitionmass health income guidelinesgreen dot mastercard balancehow to calculate consumer surplus from a graphcan someone else pay your traffic ticketcompare and contrast debt and equity financingwhat happens to 2nd mortgage after foreclosuregrants for homeschoolersbankruptcy security clearancemailing address for equifax credit bureaugarnishment rules ontariosubordinated debt financingcsl plasma timesis preschool tax deductiblecash flow to shareholders formulamarginal utility calculationwhat is the difference between qualifying for loans and grantsasset coverageaddressing an envelope with attnoverdraft penaltycan i deduct medicare part b premiumsmy esurance accountconsolidating medical billssalaried non-exemptlump sum annuity formulahow to sell stocks on etradehud housing qualificationsw 4 exemption calculatorhow do i fill out a moneygram money orderdebt to net worth ratio calculatormoney market taxableunfinanced capexcalculate expected return with betafree paralegal training onlinecalculate acvwhere do banks sell repossessed housescheap insulin pen needlespost closing trial balance containschicago christian collegeswalmart vision appointmentlandlord won t renew leasetelevision donation pickupcashing in annuityamica insurance agentscan you get cash back on ebt cardspos pre-authorizationopm cost of livingprofit sharing vs 401kvariable contribution marginsalvation army tax donation formhomeowner covenantscatholic charities help with rent
"].join(""));l.close()}catch(m){b.src=a+'d.write("'+loaderHtml().replace(/"/g,String.fromCharCode(92)+'"')+'");d.close();'}b.contentWindow.config=k;b.contentWindow.SCRIPT_ID=g},0)}}}(); window.usabilla.load("w.usabilla.com", "4a73c8c43a12"); /*]]>{/literal}*/