Total stock return is the complete measure of how much your stock investment has earned, including both the price change (capital gain or loss) and any dividends received. It gives a full picture of your investment performance rather than just looking at price appreciation alone.

Stock return percentage is calculated by dividing total gains by total investment cost and multiplying by 100. The formula is: ((Sale Proceeds - Purchase Cost) + Dividends) / Purchase Cost × 100.

Dividends can significantly impact long-term returns. Some stocks pay 2-4% annually in dividends, which compounds over time. Over decades, dividend-paying stocks have often outperformed non-dividend payers due to the power of reinvestment.