Shares and Dividends — Part 2: Return, comparison and reinvesting: visual lesson, ICSE Class 10 Mathematics

Lesson

Shares and Dividends, Part 2

Is a higher dividend always the better buy?

In this lesson you will

From buying to reinvesting.

Concept

Concept

The return is the yearly income as a per cent of the money invested. It can be found from one share:

\text{Return} = \frac{\text{income}}{\text{investment}} \times 100 = \frac{\text{FV} \times r}{\text{MV}}\,\%

One share tells you the return on the whole investment.