'

Total shareholder return

Description

Total Shareholder Return (TSR) (or simply Total Return) is a measure of the performance of different companies’ stocks and shares over time. It combines share price appreciation and dividends paid to show the total return to the shareholder expressed as an annualized percentage. It is calculated by the growth in capital from purchasing a share in the company assuming that the dividends are reinvested each time they are paid. This growth is expressed as a percentage as the compound annual growth rate.

Related formulas

Variables

TSRTotal shareholder return (dimensionless)
PendShare price at end of year (dimensionless)
PbegShare price at beginning of year (dimensionless)
DDividends paid over year (dimensionless)