The shareholders' return can be measured as total return that includes dividend. The measure "total return" consists of re-invested dividends added to the share price value. Total return, for a given period, is defined as share price performance including the value of all re-invested dividends. The dividend is calculated re-invested as from the day the share is traded exclusive the right to the dividend (ex-dividend date). Total return is presented in percentage and actual value.
The dividend's value at the time it was disbursed, i.e. not adjusted for issues, splits or redemption.
The dividend amount adjusted for share issues and splits. Example: In 2006, dividend of 10 (for a given currency) per share was given by the owners. In 2010, a split that gives shareholders two shares for one old was declared. Dividend of 10 in 2006 is recalculated taking into account that the shareholders now have twice as many shares as compared to the time of the distribution. The adjusted dividend is in this example 5 per share.
A financial ratio that indicates how much a company pays out in dividends each year relative to its share price. Dividend yield is represented as a percentage and can be calculated by dividing the value of dividends paid in a given year per share of stock held by the value of one share of stock.
The share price is a reflection of the trading in company’s share price quoted on the relevant stock exchange.
Average annual return
Average annual total return. As investors use the term, the return an investment provides over a period of time, expressed as a time-weighted annual percentage. Sources of returns can include interest, dividends, returns of capital, and capital appreciation.