If you are investing in the stock market, then the best way to calculate the total return on a stock is based on both the share price increase or decrease, as well as dividends received. The advantage is that this allows the performance of shares to be compared between shares that have a high growth and low (or no) dividends, and others that have low growth and high dividends.
My broker’s website is only providing me the information on share price increases or decreases in my portfolio, that’s why I use Sharesight to see the full picture! Get started for free, or use the special offer for followers of the Finance Storyteller: save 4 months when you purchase an annual premium plan.
Here’s an example of tracking an individual stock on Sharesight: for my stock holding in Verizon Communications, I have actually made more returns through the dividends paid than through capital gains!
