posted by Melissa .
Given the current financial information for both Microsoft and Coca Cola, how do calculate the expected dividend yield of Microsoft(MSFT) and Coca Cola(KO.
The growth or capital gains yield?
The total expected return for Microsoft and Coca Cola?
I'm not quite sure what numbers to plug into my calculations. Please help if possible.
Let's start with the expected dividend yield of MSFT. It currently is trading around $30 a share and it's paid $0.43 year in dividends. Dividing 0.43 by 30 we get 0.0143 or about 1.4% dividend yield.
The growth of a company is usually measured by its yearly or quarterly earnings per share.
The total expected return of a stock is the amount the stock price increases (or decreases?) plus the dividends paid to the stock holders.
You can find lots of information at online sites such as Yahoo Finance or Google Finance. Your library may carry the weekly publication Value Line which offers one-page summaries of many stocks. These are updated every three months.