Dividend Adjusted Return


DEFINITION of 'Dividend Adjusted Return'

When a stock's return is calculated using not only the stock's capital appreciation, but also all dividends paid to shareholders. This adjustment provides investors with a more accurate evaluation of the return received over a specified holding period.

BREAKING DOWN 'Dividend Adjusted Return'

This is a very useful return evaluation method because it provides a more accurate reflection of an investor's return. Be aware of the tax implications of the dividends received - these dividends will most likely be classified as taxable income for the investor.

  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Income Tax

    A tax that governments impose on financial income generated by ...
  3. Actual Return

    The actual gain or loss of an investor. This can be expressed ...
  4. Return

    The gain or loss of a security in a particular period. The return ...
  5. Taxable Gain

    A profit on the sale of an asset that is subject to taxation. ...
  6. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
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