$
$
Yield %
0%
Absolute Dollar Gain
$0
Final Price Value
$0
Formula / Calculation
CG Yield = [ (Sell Price - Buy Price) / Buy Price ] × 100
Isolating Price Appreciation
Total Return on an investment is made of two components: Dividend Yield (passive income) and Capital Gains Yield (price appreciation). Many high-growth tech stocks pay zero dividends, meaning 100% of their investment return relies entirely on the capital gains yield. Tracking this metric helps isolate how much an asset is actually growing strictly in market value.
Key Distinctions in Yield
Capital Gains Yield
Strictly the difference between the buy price and the sell price, expressed as a percentage of the original buy price.
Dividend Yield
Strictly the passive income paid out by the company during the year, relative to the stock price. Completely ignores whether the actual asset price went up or down.
Total Return
The ultimate metric of performance. Total Return = Capital Gains Yield + Dividend Yield.
Strategic Growth Investing
Growth investors target high Capital Gains Yields by betting on disruptive industries, accepting higher volatility and zero dividends in exchange for explosive price appreciation.
Always remember that capital gains are purely "on paper" (unrealized) until you actually sell the asset (realized). A 300% yield disappears instantly in a market crash if you do not lock in profits.
Frequently Asked Questions
If a stock pays no dividend, is CG Yield the same as ROI?
Yes. If there are no dividends and no leverage or margin costs involved, your capital gains yield is your exact total return on investment percentage.