When calculating returns on a stock, what is included in the total return aside from selling the stock?

Total return on a stock encompasses not just the price appreciation realized upon selling the stock but also any income generated from the investment during the holding period. This income typically comes in the form of dividends, which are payments made by the company to its shareholders as a way to distribute a portion of the company's earnings.

When you hold a stock, you may receive dividends periodically, depending on the company's policy and profitability. These dividends contribute to your overall return on the investment because they represent a cash flow that can be reinvested or used for other purposes. Therefore, when calculating total return, it's crucial to include dividends received along with any capital gains from selling the stock.

While the selling price represents one component of total return, and the original investment is important for understanding gain or loss, neither of those factors alone gives a complete picture of the return. Interest earned from savings also does not relate directly to stock return calculations, as it pertains to different types of investments. Thus, including dividends provides a comprehensive view of how much value the stock has generated over time.