Mr. Ravi purchased 100 shares of Ghc20 each of Radheshyam Ltd. in 2013 at Ghc 88 per share. The company has declared a dividend of 30% for the year 2015-16. The market price of shares as of 1-4-2015 was Ghc 114 and on 31-3-2016 was Ghc 138. Calculate the annual return on the investment for the year 2015-16.

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Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.