> So confused about dividends and Returns?

So confused about dividends and Returns?

Posted at: 2014-12-05 
The formula for the total stock return is the appreciation in the price plus any dividends paid, divided by the original price of the stock. The dividend is about 2.9% of the total 16.1% that the stock appreciated.

The 16.1% is how much the stock went up last year. That is pretty good and a nice return,

Dividend is a payment that is made to you for owning the stock (a reward) anything over 4% a year is great.

This stock itself seems be trading down over the last days but went up today.

Overall it may be a good buy but I wouldn't be sure without looking at it further

1) The return is calculated as

(new value/old value of assetes - 1)*100

this is not in cash. it is growth in assets

2) while dividend is policy of BOD to distribute. They take decision to give $/unit. This they manage from the liquid assets give.

(2) depends on (1). If no growth, they may not give (2).

Sometimes (1) may be negative and they might give (2).

So I'm new to this. I'm looking at income funds. A company like Vanguard is trading at ~$60. Their 1-Year Return is $16.1% but their dividends is $1.75. What's the difference between the two? $1.75 is an awful low amount to receive.

Here's more information:

http://money.usnews.com/funds/etfs/income-funds/vanguard-high-dividend-yield-index-fund/vym

If someone can translate the fund snapshot to make it easier to understand, that would be nice!