Given:
Annual dividend = $2.36 per share
Cost per share = $52.60
By definition, the rate of return is
r = (Vf - Vi)/Vi
where
Vi = initial investment
Vf = final value, including dividends.
Assume that the share price remains unchanged within the year. Then the final value is
Vf = 52.60 + 2.36 = $54.96
The initial investment is Vi = $52.60
The rate of return is
r = (54.96 - 52.60)/52.60
= 0.04487
= 4.5% approximately
Answer: The rate of return is approximately 4.5%
