Price Return vs. Total Return

The price return vs. total return of an investment can significantly alter the performance of a dividend-paying stock.

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Difference:

The total return is a measure of an investment's performance that considers both the change in price and any income (such as dividends or interest) generated by the investment. It represents an investment's overall gain or loss over a certain period.

Price return, also known as capital return, is a measure of the performance of an investment that only takes into account the change in the price of the investment. It represents the change in the value of the investment due to price movement but does not include any income that the investment generates.

In other words, the total return includes price return and income return, while price return only reflects the investment price change.

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Dividends and Index Returns