Hi, I'm visiting from other forum subjects I usually participate in.

I am struggling with the proper way to establish a percentage of investment realized through particular stocks as a statement of the dividend return on investment without regard to the overall net gain or loss on the stock.

Example No. 1 -- It is clear that if I have purchased a stock for $10 and sold it for $10 and received $2 in dividends, the dividend return has been 20 percent on my investment.

Example No. 2 -- If I purchased the stock at $10 and received $2 in dividends and then sold the stock at only $5, how do I calculate the dividend return as a percent of my investment? Does it remain 20 percent based on my original $10 investment?

Or does it now become 40 percent based on the net cost of the original investment of $5?

Example No. 3 -- If I purchased the stock at $10 and received $2 in dividends and then sold the stock for $15, how do I calculate the dividend return as a percent of my investment? Does it remain 20 percent of my original $10 investment. Or does it become 40 percent based on the net cost of my original investment?

Somehow, it seem incongruous that one could consider a net investment as being $5 if the $10 stock either gained or lost $5.

Yet it does seem logical that if one invested $10 in a stock and sold it for $5, his net investment can be consider $5 since that is all it actually cost in the long run. But, if the stock is sold at $15 or a $5 profit, the net cost (cost minus profit) is still $5.

So, I think, ultimately, what my question is relates to is this: upon sale of a stock, what should the dividends be compared to in order to determine what your dividend return was as an expression of the investment -- the original gross cost or the subsequent net cost?

If someone can clear up the logic of this question, I can then establish the proper math for my spread sheet.