Sources of Equity Returns

Free CFA Level I lesson in Equity Investments. 13 min read, ~2,021 words.

Total return = price return + dividend yield, always. Price return alone ignores cash distributions; total return includes them. Dividend dates in order: declaration, ex-dividend, holder-of-record, payment. The ex-date is the entitlement cutoff, one business day before the record date. Cash dividends and equal-dollar share repurchases produce identical shareholder wealth...