Calculate capital gains yield, dividend yield, total return, and annualized performance for stock investments with detailed portfolio projections.
Capital gains yield measures the price appreciation of an investment as a percentage of its purchase price. Combined with dividend yield, it makes up the total return — the complete measure of an investment's performance. Understanding these components helps investors evaluate whether their returns come primarily from price growth or income.
Growth stocks typically deliver higher capital gains yields with lower or no dividends, while value and income stocks often have lower price appreciation but higher dividend yields. The total return perspective is essential for comparing investments across styles, as focusing only on price movement ignores a significant return component.
This calculator computes both the capital gains yield and dividend yield for any stock investment, then annualizes the total return based on your holding period. It also projects portfolio growth over time, showing month-by-month estimates of price appreciation and cumulative dividend income.
Understanding the breakdown between capital gains and dividend yield helps you evaluate investment performance accurately. This calculator shows how much of a stock's return comes from price appreciation versus cash income, and how those returns compound over different holding periods.
Capital Gains Yield = (Ending Price − Beginning Price) / Beginning Price Dividend Yield = Dividends Per Share / Beginning Price Total Return = Capital Gains Yield + Dividend Yield Annualized Return = (1 + Total Return)^(12/months) − 1
Result: 22% total return
A stock bought at $100, sold at $120 with $2 dividends: capital gains yield = 20%, dividend yield = 2%, total return = 22%. For 100 shares: $2,000 capital gain + $200 dividends = $2,200 total profit.
Capital gains yield measures price movement only. Dividend yield measures cash income. Together they give a clearer view of total return than price change alone.
Short holding periods can make annualized returns look extreme, while longer periods usually produce a smoother comparison across investments.
Use the output to compare securities with different dividend policies, then check whether reinvestment assumptions or taxes should be modeled separately.
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This worksheet separates return into two pieces: price appreciation and cash dividends. It computes capital gains yield from the change between beginning and ending share price, dividend yield from dividends received per share, adds those components into total return, and then annualizes the combined result using the entered holding period. It also converts the per-share return into dollar results using the entered share count.
The page is intended as a performance breakdown worksheet, not a tax-lot accounting tool. It does not model lot selection, wash sales, reinvested dividends, qualified-versus-nonqualified dividends, or short-term versus long-term realization beyond the general tax context in the explanatory copy.
Capital gains yield is the percentage change in a stock price. It represents the price appreciation component of total return, calculated as (ending price - beginning price) / beginning price.
Yes, if the stock price declined. A stock bought at $50 that drops to $45 has a capital gains yield of -10%. Dividends may partially or fully offset the loss.
The components have different tax treatments and investor implications. Capital gains are only realized when sold, while dividends provide regular income. They may also be taxed at different rates.
Annualization converts a holding-period return to an annual equivalent using compound return math, allowing fair comparison across investments held for different periods.
This calculator assumes dividends are received as cash, not reinvested. Dividend reinvestment would compound returns further due to DRIP effects.
Capital gains are taxed when realized. Short-term gains (held < 1 year) are taxed as ordinary income. Long-term gains get preferential rates of 0%, 15%, or 20%.