Total Return

The total return on a portfolio of investments takes into account not only the capital appreciation on the portfolio, but also the income received on the portfolio. The income typically consists of interest, dividends, and securities lending fees. This contrasts with the price return, which takes into account only the capital gain on an investment.

Stock and bond funds provide annual Total Return values summarizing the last ten years of operation. Total Return assumes that dividends are reinvested in the funds. A reasonably accurate equation for the percent Total Return in a year of any security is the sum of the percent gain (or loss, a negative percent) over the year in the security value, plus the annual dividend yield expressed as a percent (100 × annual dividends divided by the security price at the beginning of the year). This slightly understates the Total Return because it ignores the reinvestment of dividends, as soon as they are paid, for purchasing more of the security.

Famous quotes containing the words total and/or return:

    only total expression

    expresses hiding: I’ll have to say everything
    to take on the roundness and withdrawal of the deep dark:
    less than total is a bucketful of radiant toys.
    Archie Randolph Ammons (b. 1926)

    ... in spite of everything, I still believe that people are really good at heart. I simply can’t build up my hopes on a foundation consisting of confusion, misery, and death. I see the world gradually being turned into a wilderness, I hear the ever approaching thunder, which will destroy us too, I can feel the sufferings of millions and yet, if I look up into the heavens, I think that it will all come right, that this cruelty too will end, and that peace and tranquillity will return again.
    Anne Frank (1929–1945)