Investments
Analysis of performance
Share one performance
You are receiving two types of return on your DEF shares: income (dividend) and capital growth.
In our example, the dividend is paid on 10,000 shares at 40 cents per share, which is $4,000. In addition your DEF shares value has increased from $10 to $11.
So our total return can be calculated as follows:
Dividend received (10,000 x 0.40) $ 4,000
Add capital growth ((11-10) x 10,000) $10,000
Total return $14,000
The total return is $14,000 on your $100,000.
To express this as a percentage it is $14,000 divided by $100,000. The return for your DEF shares is 14% (0.14) for that year.
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