Total Return
Quick definition: Total return is the full gain on an investment: the change in price plus all dividends or interest received, shown as a percentage of the starting amount.
In plain English
Price change alone leaves out the income you collected on the way. Total return adds the two together.
Total return = (price change + income received) ÷ starting price × 100
Example
You buy a share at $100. A year later it is worth $108 and it paid $3 in dividends. Your total return is ($8 + $3) ÷ $100 = 11%.
Why it matters
Dividend stocks can look slow if you only watch the price. Total return shows the real picture, especially when dividends are reinvested.
Common mistakes
- Comparing the price return of one investment with the total return of another.
- Ignoring taxes and fees.
Investment Disclaimer
All information and tools on this website are provided for informational
purposes only. The calculations, examples, and projections are simplified
estimates and may not reflect real-world investment results.
Nothing on this website should be interpreted as financial, investment,
tax, or legal advice. You are solely responsible for your investment
decisions and any outcomes resulting from them.
Past performance and projected returns do not guarantee future results.
Always conduct your own research and consult a qualified financial advisor
before making investment decisions.