"Total return is the complete financial gain or loss on an investment over a specific period, including both capital growth and all generated income" -investopedia When I first started investing I immediately decided "dividends" 😆. So I bought $VDY as my first non single stock holding. I held it for 1 year. Instinctivly, my initial thought was "yield + appreciation = good times XD" I wasn't too far off either. but thats it isnt it? All that is left is how we do it. I made the change from VDY because I belive diversity and 100% equity will be the real drivers of return. Not that they paid a dividend. Dividends and Distributions feel nice, but what matters is what is left in your pocket at the end. p.s. VDY has outpreformed my $XEQT recently. but ive got 30 years to explore the change in that difference.
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19 Comments
Ronan @ronan · 10d
Recency bias VDY was not a top performer from its 2012-2020 period. Once again, investors only look at recently and hence are “rolling in the dough” due to Canadian recent outperformance
Michael Conroy@conroy119 · 10d
The key to this formula is how "income" is defined. Here it assume you actually took the income and spent it basically. If you instead reinvested this income, it affects the total return equation.
Will W@williamwang23 · 10d
Or hold both like me :)
Jenny @penjen · 10d
Dividends are compounded over time dude
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