Price change
The shares may become worth more or less.
Investing
A dividend is cash distributed to shareholders, but it is only one part of an investment's total return.
Dividends
It is one way an investment can provide a return.
The shares may become worth more or less.
The company may distribute cash to shareholders.
It comes from the company's resources. Paying cash to shareholders means that cash is no longer sitting inside the business.
The share price also changed. Both pieces matter when evaluating what happened to the investment.
Yield is the annual dividend relative to the share price. A falling share price can make the yield look higher even when the business is facing problems.
They may pay dividends, reinvest in the business, repay debt, buy back shares or hold cash. Different businesses make different choices.
May still grow its business and share price.
May reinvest more of its resources in pursuit of future growth.
The tax treatment of dividends depends on the account and the type of dividend. Registered and non-registered accounts can produce different after-tax outcomes.
How did the value of the investment change, and what cash distributions did you receive along the way?
Remember this
Do not judge an investment only by the cash it pays out.