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Hi jon,

Total Return refers to the return on an investment, including income from dividends and interest, as well as appreciation or depreciation in the price of the security over a given time.

Example #1: You buy a stock on January 1 for $50. On June 30, the stock has appreciated to $55 and it paid no dividends. Your 6-month total return is 10%.

Example #2: You buy a stock on January 1 for $50. On June 30, the stock has depreciated to $48 (-4%), but it has paid out two quarterly dividends of 1.5% (75 cents per share on 3/31 and 72 cents per share on 6/30 -- for a combined dividend of 2.9%. Then your total return for the 6-month period is a negative 1.1%

In certain stock screens a high return over a short period of time, such as 13 or 26 wks, may be attempting to identify a hot growth sector. But for long-term investing, the more significant total return figure will be at least a year or more.

Hope this helps.


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