LESSON 10.2 · CORE

Total return vs price return

Judging a dividend portfolio on price alone flatters the wrong holdings.

MEASURING PERFORMANCE HONESTLY4 MIN READ

Price return is the change in value from the price alone. Income return is what the holdings paid you along the way. Total return is the two added together, and for a dividend portfolio it's the only fair way to judge a holding. A share that pays 6% and drifts 2% lower has still returned about 4%; judged on price alone, it looks worse than a share that rose 3% and paid nothing.

The app shows the pieces separately, so you add them yourself. The Stock Return figure in your Portfolio Summary is the price return on what you still hold: current value minus remaining cost. Dividends are counted in Total Dividends, and profits or losses on shares you've sold in Realised Gains: all three are tiles you can put in one Stat Tiles widget. Judging a dividend portfolio by Stock Return alone will always flatter the holdings that pay the least.

Price −2%Dividends +6%Total return about +4%

Judged on price alone, this holding looks like a loser.

See your Return, dividends and realised gains →

Educational content only. It is not personal financial advice.