Total shareholder return

The total shareholder return ( engl. total shareholder return, TSR ) is a parameter for evaluation of investment performance (performance ) of an equity exposure.

While the dividend yield the ratio of the dividend describes the current price, the stock return is a measure of how the value of an equity exposure over time has evolved, and takes into account both the costs incurred during the period dividends as well as the possibly occurring price increases.

The dividend yield of a stock can by definition not be negative. Since the stock return is also projected losses, the stock return, however, can also be negative. Experience has shown that the likelihood of a negative stock returns is, however, the smaller, the longer a stock holdings.


The total shareholder return for a given period is calculated as

Example DAX

The Berlin finance professor Richard Stehle has considered the dividend yield over the period 1948-2005 using the example of the shares in the DAX. He has for this investment period of 57 years investigated the average annual return would have dropped equity exposure when on December 31 of the given year (purchase year) would have bought the stocks that are included in the DAX, and these 31 December of other year ( year of sale ) would have sold, assumed that in accordance with the definition of the stock return, the dividends paid plus the refunded corporation are reinvested in shares of the distributing company (see imputation, half-income method and from 2009: flat tax, partial-income procedure ). Maybe incurred income tax it does not consider ( as individually variable). The result of his studies he has shown in a yield triangle.

For the period under consideration (1948-2005), there are 1512 possible investment periods. In 84 of these potential investment periods, there was a negative average annual equity returns. After a conditioning period of 10 years there were only 7 cases a negative stock return, the minimum rate of return was -2 percent, and investment periods of 15 years, an average annual stock return of about 0.5 % was found in all cases ( minimum at 31 Creating December. , 1960 and December 31, 1976 sale ).