Capital gains yield

Capital gains yield is the price-appreciation part of a share's return, equal to (ending price − beginning price) ÷ beginning price, excluding any dividend.

ByHoang TruongUpdated July 11, 2026

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A share trades at €50 at the start of the year and €54 at the end, and pays a €1.50 dividend during the year. Capital gains yield is (€54 − €50) ÷ €50 = 8%. Dividend yield is €1.50 ÷ €50 = 3%. Together they make up an 11% total return for the year.

Where it fits

TopicRisk, Return & the CAPMCoreSubjectCorporate FinanceCoreTopicBond & Equity ValuationCore

The formula

LaTeX

g = \frac{P_1 - P_0}{P_0}

Variables

$P_{0}$: Beginning price (€)
$P_{1}$: Ending price (€)

The portion of a share's return that comes from the change in price alone, excluding any dividend received.

Check yourself

PracticeCORE

A share trades at €75 at the start of the year and €72 at the end, after also paying a €3 dividend during the year. What is the capital gains yield?

Select an answer to check your understanding.