Relative contribution to total return AAP (Advance Auto Parts, Inc.) has dividend yield of 0.18%, its...
Relative contribution to total return
AAP (Advance Auto Parts, Inc.) has dividend yield of 0.18%, its capital gains yield of 2019 is 1.57%.
What do you observe about the relative contribution to total return from the dividend yield as opposed to the capital gains yield?
Homework Answers
Dividend yield is 0.18%
Capital gains yield is 1.57%
Total return = 0.18% + 1.57% = 1.75%
Clearly, we observe that capital gains has contributed significantly to the total return.
Roughly, the dividend yield contributes just over 10% of the total return, the remaining 90% of the total return is coming from the capital gains.
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Relative contribution to total return
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