Capital Gain

Capital gain is a gain recognized when a capital asset is sold or otherwise disposed of for more than its adjusted basis.

Why this matters to income investors

Sale profit can supplement total return but should not be mistaken for recurring dividends.

How to use capital gain in your research

Use the payer’s final tax document and your purchase records to identify the amount, tax character, and basis effect. Tax treatment can depend on your circumstances, so do not infer it from the cash payment alone.

This material is general education and information, not individualized investment, tax, or legal advice.