Total Shareholder Return (TSR)

Total Shareholder Return (TSR) is a performance measure that calculates the total return to shareholders over a specific period, including both capital gains (from stock price appreciation) and dividends paid. TSR is expressed as a percentage and is a key metric for evaluating the performance of a company from an investor’s perspective. It allows shareholders to assess the overall profitability of their investment, including income from dividends and changes in stock price.

Example

A shareholder purchases stock at $50 per share, and over one year the stock price increases to $60, with $2 in dividends paid. The TSR for that year would be 24% [($10 + $2) / $50].