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Lesson 13 6 minute lesson Interactive
Dividends and Total Return
See how price changes and cash distributions work together in an investment result.
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Lesson goal
Distinguish dividend income from total return and understand reinvestment.
Three ideas to keep
1
A dividend is a distribution, not free extra money
2
Total return includes price movement and income
3
Reinvesting can purchase additional shares
Try it
Make the call
An investment rises 4% and distributes 2% during the same period. Before taxes and fees, what should you examine?
Knowledge check
Lock it in
What can dividend reinvestment do?
Finish both activities