◈ GLOSSARY · INVESTING
Total Return.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
Total return is the full return on an investment — price change plus dividends or interest, reinvested. It's the honest number to compare two investments by; looking at price change alone undercounts dividend-paying stocks and bonds significantly. Quoted returns on index funds and ETFs are almost always total returns.
◈ IN PRACTICE
Example
A stock starts the year at $100, ends at $105, and pays $3 in dividends along the way. Price return is 5%, but total return is 8%. Over 30 years, reinvested dividends have historically accounted for roughly 40% of the S&P 500's total return.
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