Share return is the total result you achieve with a share. It consists of the price increase or decrease of the share and any dividend received. It is usually expressed as a percentage of your original investment.
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Share return shows how much your investment has actually generated.
When you buy a share, the price can rise or fall. The difference between the purchase price and the selling price determines your capital gain or loss. In addition, some companies may pay dividends, which provide extra income. The total share return is the combination of both. By calculating the return as a percentage, you can easily compare how different shares have performed.
Short example:
Suppose you buy a share for €50. After one year, the price is €55 and you have received €2 in dividend. Your total gain is €7. €7 divided by €50 is 14%. Your share return is therefore 14%. If the price had fallen to €45 and you had received €2 in dividend, your total result would be -€3, which equals a return of -6%.
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