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M asked in Business & FinancePersonal Finance · 7 years ago

Including dividends into monthly returns calculation?

Okay, so let's say you're trying to calculate the monthly return of a stock. You have the beginning price of $42.61 for the month, the closing price of $42.09 for the month, and according to Yahoo! Finance a dividend of around 0.195 paid during that time. Which is the right formula to use in calculating this stock's monthly return, and how would I include dividends into the calculation?

1 Answer

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  • Prof
    Lv 7
    7 years ago
    Favorite Answer

    The stock lost .52 for the month, so you have a negative return of -.52 / 42.61, not including dividends.

    if you include dividends, then your loss is .195 smaller.

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