What the investor owns
A shareholder owns a security issued by the company. Share classes can carry different voting and distribution rights. Common shareholders generally stand behind creditors and preferred shareholders in a liquidation. A dividend is not guaranteed simply because a company paid one previously.
Worked return example
Assume 50 shares are purchased at $20 and later sold at $22. The price gain is $100. If each share also paid a $0.40 dividend during ownership, distributions add $20. Total profit is $120 before fees and taxes, or 12% of the $1,000 purchase cost. This is a hypothetical accounting example, not an expected return.
Reading the result
A rising share price does not itself tell you whether business earnings improved. Separate company results, valuation and market price. Consult the financial statements and the rights attached to the specific share class before drawing conclusions about ownership or income.
Sources & method
Sources support the referenced concepts. Numerical examples are hypothetical unless stated otherwise. A link does not imply endorsement.