What is return?
Return is what your investment has given you — usually measured as a percentage of the amount you put in. It has two parts: the price gain (the stock has risen) and the dividend (the company has paid out money). If you bought for 1,000, the stock is now worth 1,080 and you received 20 in dividend, your return is 100 or 10%. A return can also be negative — then it is called a loss.
Four kinds of return that are not the same
- Gross return: Before costs. The figure funds prefer to show.
- Net return: After commission, TER and fees. What you actually get.
- Return after tax: What lands on your account. In Denmark, 10% becomes 7.3% after 27% share-income tax.
- Real return: After inflation. A 7% return with 2% inflation is about 5% in purchasing power.
When someone says "10% return", ask: before or after what?
Return per year — so you can compare
"The stock is up 50%" says nothing if you do not know over how long. 50% in one year is outstanding. 50% in ten years is about 4.1% a year — below what an index typically gives. Always convert to annual return before comparing. And remember it is not 50/10 = 5%, because compound interest is at work: the true figure is a little lower.
Historical return and expected return
Broad stock markets have historically returned around 7% a year on average before inflation — with some years at +30% and others at −40%. The average is useful for calculating over 20 years. It says nothing about next year. Anyone who promises a particular return going forward is promising something they cannot keep.
The typical beginner's mistake
Looking at the return without counting the dividend. A stock at the same price as five years ago that has paid 4% in dividend every year has returned about 22% — not zero.
How you see it in Kiggo
Enter your own purchases in Kiggo's portfolio, and it shows your return per stock and in total. On every stock Kiggo shows the price development over several periods and the dividend yield, so you can see both parts of the return.
Related terms
Frequently asked questions
How do I calculate my return?
(Value now + dividends received − what you paid) divided by what you paid. Bought for 500, received 10 in dividend, and the stocks are worth 540: (540 + 10 − 500) / 500 = 10%.
What is a good return?
It depends on what the market gave. 8% is good if the market gave 5% — and poor if it gave 15%. Always compare with a benchmark. Over long periods, 6–8% a year before inflation is what broad stock indices have historically delivered.
What is the difference between return and dividend?
Dividend is the part of the return the company pays out in cash. Return is the whole thing — dividend plus price gain. A stock without dividend can easily have a high return if the price rises.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-23.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
