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total return

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Financial Dictionary

Total Return

When measuring performance, the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time.

Investopedia Commentary

Total return accounts for two categories of return: income and capital appreciation. Income includes interest paid by fixed-income investments, distributions or dividends. Capital appreciation represents the change in the market price of an asset.

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See also: Absolute Return, Capital Gain, Dividend, Expected Return, Fixed-Income Security, Return, Return on Assets, Return on Equity, Return on Investment

Also spelled: total returns

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Financial Dictionary

total return

The sum of dividend or interest income and any capital gain. Total return is generally considered a better measure of an investment's return than dividends or interest alone.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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