Capital Gains Yield
Computes the capital gains yield of an asset: the percentage price appreciation between the start and end of the period, (P1 − P0)/P0. It's the part of the total return that comes from the price change, not counting dividends — added to the dividend yield, it gives the stock's total return. It serves to separate how much of the gain came from appreciation and how much from income. Enter the starting price and the ending price.
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Capital Gains Yield
Computes the capital gains yield of an asset: the percentage price appreciation between the start and end of the period, (P1 − P0)/P0. It's the part of the total return that comes from the price change, not counting dividends — added to the dividend yield, it gives the stock's total return. It serves to separate how much of the gain came from appreciation and how much from income. Enter the starting price and the ending price.
The part of the return that comes from price
A stock's total return has two components worth separating: what came from price appreciation and what came from dividends. The capital gains yield measures the first: the percentage change in price between the time of purchase and now. It's the gain that exists on paper, even if you haven't sold.
Added to the dividend yield, the capital gains yield makes up the total return. This split is useful because the two behave differently: growth stocks deliver almost everything through appreciation and little in dividends, while mature stocks do the opposite. Understanding where your return comes from helps align the portfolio with your goal, income or growth.
Enter the starting and ending prices of the period. The tool returns the capital gains yield as a percentage. To get the total return, just add the dividend yield for the same period. Remember a paper gain only becomes a real gain at the sale, and that capital gains tax applies only at that moment.
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The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.