A stock pays a $1 dividend and rises in price from $50 to $51. What is stock holder’s total percentage return?

Question

A stock pays a $1 dividend and rises in price from $50 to $51. What is stock holder’s total percentage return?

8%

4%

5%

-2%

Answer 1

total percentage return to what benchmark???

Did the dollar fall over that period?

Answer 2

the rise in price is2% the dividend is also is also 2%

Answer 3

Total return is of 2 dollars.

The return is: (51+1-50)/50 = 4%