DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
Total return from shares comes from dividends paid, growth in company earnings, and changes in the price investors are willing to pay for each unit of earnings.
How it works
Changes in valuation can dominate over short periods but tend to matter less over decades, when earnings growth and income accumulate.
Over long horizons, share-price returns can be broken down into a few building blocks.
What to watch
This framework helps investors set expectations and judge whether current prices assume unusually strong future growth.
Key concepts
- Equities
- Returns
