bestnftgamestomakemoney| How to calculate the holding rate of return on stocks

When investing in the stock marketBestnftgamestomakemoneyTo learn how to calculate stocksBestnftgamestomakemoneyThe holding rate of return is very critical. The rate of return is a key indicator of investment return, which can help investors evaluate their investment performance.

What is the holding rate of return?

Holding yield (Holding Period Return)BestnftgamestomakemoneyHPR) refers to the return made by investors during the period of holding a stock. It includes capital gains (gains from rising share prices) and dividends (gains from dividends). It is usually calculated by the following formula:

Holding yield (HPR) = [(final share price + dividend yield-opening share price) / opening share price] * 100%

This formula takes into account all the returns of investors during the period of holding stocks and is a comprehensive measure of the return on investment.

How to calculate the holding rate of return on stocks?

To calculate the return on stock holdings, you need the following three key data:

Opening share price: this is the share price when you buy the stock. Final share price: this is the share price when you sell the stock or calculate the yield. Dividend yield: this is all the dividends you receive during the period you hold the stock.

Suppose you bought 100 shares of a company at a price of 10 yuan per share a year ago today, then the total cost of the opening share price is 1000 yuan. A year later, the share price of the stock rose to 12 yuan per share, and you received a dividend of 20 yuan this year. So, your holding rate of return is calculated as follows:

Holding yield = [(final share price * number of shares + dividend yield-opening share price * shares) / opening share price * shares] * 100%

Holding yield = [(12 yuan * 100 shares + 20 yuan-10 yuan * 100 shares) / 1000] * 100% = 22%

This means that you get a 22% return on this investment over the course of the year.

Note:

The holding rate of return is a time-weighted index, which is not affected by the length of the holding period, and is suitable for comparing the investment performance of different periods of time. The calculation of dividend income needs to take into account taxes and other possible expenses. The holding rate of return does not take into account transaction costs, such as commission, stamp duty, etc.

In short, calculating the holding rate of return on stocks is a key step in the process of investment decision-making. Knowing how to calculate the holding rate of return can help you better assess the return on your investment and make wiser investment decisions.