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Hi, Zembuy:
Let me help you on this one. In this case, you will have two source of profits, providing that you sell the shares. One is: capital gain, which is the difference between the price you sell and buy the shares. Two is: dividend, which depends on the yield when you buy the shares and how long you hold the shares.
In the Wells Fargo case, if you hold the shares for one year and sell it, then your capital gain will be: $ 20- $ 16 = $ 4 per share (or 25% of your capital), while your dividend will be 9.10%. Total return for the year is 34.10%.
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