An investor buys a stock for $100 per share and sells it after one year for $120 per share. During that year, the stock paid a dividend of $5 per share. Calculate the total return on investment (ROI) percentage.

Sun, 03 May 2026 02:19:12 +0000

**An investor buys a stock for $100 per share and sells it after one year for $120 per share. During that year, the stock paid a dividend of $5 per share. Calculate the total return on investment (ROI) percentage.** In today’s investment landscape, understanding how equity gains combine with dividend income is key to making informed portfolio decisions. Investors increasingly focus on clear returns—especially when buying a stock at $100, holding it through market fluctuations, and walking away with more than just improved share value. The recent example of a $100 share priced at $120 after one year, plus a $5 dividend per share, invites a simple but essential calculation: How does total return stack up when both capital appreciation and dividends are factored in? This kind of financial snapshot is trending among US investors tracking income-generating stock plays. With rising interest rates influencing capital markets and dividends offering stable cash flow, understanding ROI helps align expectations with real-world outcomes—not just headline prices. ### The Full Picture of Your Stock Investment