Total Return
Plain-English definition
The combined investment gain or loss from changes in value and income over a stated period, relative to the starting investment.
Why it matters
Dividend income can coexist with a loss in capital value.
Example
A hypothetical $100 position ending at $94 after paying $8 in cash dividends has a 2% simple total return, ignoring fees and taxes.
How income investors use it
Use consistent periods and account for reinvestment and cash flows when relevant. State whether figures are before or after fees and taxes.
This material is general education, not individualized investment, tax, or legal advice.