Definitions
Total return
Total return measures shareholder return from both share price changes and dividends, assuming dividends are reinvested on the ex-dividend date. It is shown as a percentage and in absolute terms.
Dividend
Unadjusted dividend
The dividend's value at the time it was disbursed, i.e., not adjusted for issues, splits or redemption.
Adjusted dividend
The dividend amount adjusted for share issues and splits. Example: In 2006, a dividend of 10 (for a given currency) per share was given by the owners. In 2010, a split that gives shareholders two shares for one old share was declared. Dividend of 10 in 2006 is recalculated taking into account that the shareholders now have twice as many shares as compared to the time of the distribution. The adjusted dividend is in this example 5 per share.
Dividend yield
The dividend yield measures the annual dividends paid by a company relative to its share price. It is expressed as a percentage and is calculated by dividing the annual dividend per share by the current share price.
Share price
The share price is a reflection of the trading in the company’s share price quoted on the relevant stock exchange.
Average annual return
As investors use the term, the return an investment provides over a period of time, expressed as a time-weighted annual percentage. Sources of returns can include interest, dividends, returns of capital, and capital appreciation.