annual return


The increase in value of an investment, expressed as a percentage per year. If the annual return is expressed as annual percentage yield, then the number takes into account the effects of compounding interest. If it is expressed as annual percentage rate, then the annual rate will usually not take into account the effect of compounding interest.

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You need to make sure that you get the most annual return that you can so that you are getting good value for your time.

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To accurately reflect the overall annual return on my stock portfolio I must include both the change in value from year to year as well as dividends received.

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In 2001 John Smith bought shares in Facebook at twenty dollars a share, recieved two dollars a year in didvidends then sold the shares in 2006 for thirtyfive dollars a share giving him an annual return of 85%.

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