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You bought one share of stock on January 1 at $20

Finance

You bought one share of stock on January 1 at $20.00 per share, and sold it on December 31 of the same year for $22.50 per share. During the year, you received total dividends of $1.50. What was your total return on this stock for the year?

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Total return = [(Ending value + dividends - beginning value) / beginning value] * 100

Total return = [(22.5 + 1.5 - 20) / 20] * 100

Total return = 20%