Dividend Adjusted Return

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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.

INVESTOPEDIA EXPLAINS '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.

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