- Capital gains from price appreciation
- Dividend income
Saturday, 29 April 2017
Return Characteristics of Equity Securities
The two main sources of an equity security's total return are:
The total return on non-dividend paying stocks only consists of capital gains.
Investors in depository receipts and foreign shares also incur foreign exchange gains (or losses).
Another source of return arises from the compounding effects of reinvested dividends.