Capital Gains Yield: Buy at $500, Sell at $600, $10 Dividend
Buying at $500, selling at $600, and receiving $10 in dividends produces a capital gains yield of 20% (22% total return).
How to use this tool
- Enter the price you paid per share.
- Enter the current price or the price at which you sold.
- Enter any dividends received per share over the period.
- Read the capital gains yield (price only) and the total return.
- Use total return to compare income-paying investments fairly.
Calculate the capital gains yield and total return on a high-priced stock with dividend income.
Frequently asked questions
- What is capital gains yield?
- It is the return from an investment's price change alone, calculated as (selling price − purchase price) ÷ purchase price, expressed as a percentage.
- How does it differ from total return?
- Capital gains yield ignores income. Total return adds dividends or interest to the price change, giving a fuller picture of what you earned.
- Can capital gains yield be negative?
- Yes. If the selling price is below the purchase price, the capital gains yield is negative, representing a capital loss.
- Is this an annual figure?
- No. It is the return over your holding period. To compare across periods, annualize it or divide by the number of years held.