Total return includes price changes and income.
Price return leaves dividends out. Total return also counts investment income, such as dividends. It can still be negative.
One SPY share · historical example
See what changes when dividends count.
31 Dec 2021 → 30 Dec 2022
USD · no reinvestment
−18.15%
Return including dividends earned, without reinvestment
(382.43 − 474.96 + 6.320678) ÷ 474.96 = −18.15%
- Share value at the end
- $382.43
- Dividends paid during 2022
- $4.539278
- December dividend still due
- $1.781400
Including the income makes the loss smaller. It does not turn the year into a gain.
This example assumes one share bought at the closing price of $474.96 and held throughout the period. Dividends are not reinvested and cash earns no interest. Trading costs and taxes are excluded. Fund expenses are already reflected in the observed prices.
The December distribution was earned during the holding period but paid on 31 January 2023. We count it as an amount due, not cash already received. The January 2022 payment is excluded because its ex-dividend date preceded the simulated purchase.
Three different views
Counting dividends is not the same as reinvesting them.
Price return
Looks at the share price change. Dividends are left out.
Dividends kept as cash
The income still counts towards total return. It stays separate from the shares.
Dividends reinvested
The income buys more shares. Those additional shares can then rise or fall in value.
An S&P 500 total return index assumes dividends are reinvested under its own rules. That is a different calculation from this cash example. Check the convention before comparing the numbers.
A consistent comparison
Include the same things on both sides.
When comparing a stock with an ETF, check whether each result includes dividends. Match the period and currency too, and state whether returns are before or after costs and tax.
Money added or withdrawn is a separate question. Time-weighted return removes the effect of external cash flows. Our TWR / MWR guide explains which question each method answers.
The historical inputs
Income earned during the holding period.
| Ex-dividend date | Payment date | USD per share |
|---|---|---|
| 1.366009 | ||
| 1.576871 | ||
| 1.596398 | ||
| 1.781400 |
Gross distributions total $6.320678 per share. The starting and ending prices are market closes, not dividend-adjusted prices, so adding the income does not count it twice.
Sources and assumptions
Sources checked 20 October 2026. This historical illustration is not a forecast, investment recommendation or audit of your portfolio. It is not an official reinvested fund total return.
- FINRA: Key Concepts — Return and Rate of Return explains price changes and investment income.
- S&P Dow Jones Indices: S&P 500 Dividend Points Index FAQ explains the distinction between price and total return indices, including reinvestment.
- State Street: SPDR ETF historical distributions (XLSX) supplies the four SPY distribution amounts and dates above.
- SEC-hosted Morgan Stanley pricing supplement, page 21 lists the $474.96 and $382.43 quarter-end market closes, sourced to Bloomberg and reproduced without independent verification by the issuer.
- SPY prospectus, January 2023, Performance section describes the December distribution paid in January and its different reinvestment convention.