Capital Gains Yield
Computes the capital gains yield of an asset: the percentage price appreciation between the start and end of the period, (P1 − P0)/P0. It's the part of the total return that comes from the price change, not counting dividends — added to the dividend yield, it gives the stock's total return. It serves to separate how much of the gain came from appreciation and how much from income. Enter the starting price and the ending price.
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Capital Gains Yield
Computes the capital gains yield of an asset: the percentage price appreciation between the start and end of the period, (P1 − P0)/P0. It's the part of the total return that comes from the price change, not counting dividends — added to the dividend yield, it gives the stock's total return. It serves to separate how much of the gain came from appreciation and how much from income. Enter the starting price and the ending price.
The part of the return that comes from price
A stock's total return has two components worth separating: what came from price appreciation and what came from dividends. The capital gains yield measures the first: the percentage change in price between the time of purchase and now. It's the gain that exists on paper, even if you haven't sold.
Added to the dividend yield, the capital gains yield makes up the total return. This split is useful because the two behave differently: growth stocks deliver almost everything through appreciation and little in dividends, while mature stocks do the opposite. Understanding where your return comes from helps align the portfolio with your goal, income or growth.
Enter the starting and ending prices of the period. The tool returns the capital gains yield as a percentage. To get the total return, just add the dividend yield for the same period. Remember a paper gain only becomes a real gain at the sale, and that capital gains tax applies only at that moment.
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Cost of Preferred Stock
Computes the cost of capital of a preferred stock: the fixed annual dividend divided by the stock's market price, as a percentage. Since preferred stock usually pays a constant dividend, it behaves like a perpetuity, and its cost is the yield on that dividend. This figure goes into the WACC calculation as the cost of the preferred-capital slice. Enter the annual dividend and the preferred stock's price.
Realized Yield with Reinvestment
Computes the realized compound (horizon) yield of a bond held to maturity, taking into account the actual reinvestment rate of the coupons. Unlike YTM, which assumes coupons earn the bond's own rate, this calculation uses the rate you can actually get when reinvesting — hence the concept of reinvestment risk. It adds the future value of reinvested coupons to the principal and returns the annualized yield (BEY and effective annual). Enter the face, the coupon per period, the reinvestment rate, the periods, the purchase price and the periods per year.
Cost of Equity (Bond Yield Plus Premium)
Estimates the cost of equity using the bond yield plus risk premium method: it adds to the company's own long-term debt yield a risk premium for the gap between stocks and bonds. It's a quick alternative to the CAPM, useful when you lack a reliable beta: if the company pays 8% on its debt and the typical equity-over-debt premium is 4%, the cost of equity comes to around 12%. Enter the debt yield and the risk premium.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.