The Distribution Arrived. Did Your Wealth Grow?
The cash arrived. That is useful information about the payment. It does not, by itself, tell you how the whole investment performed.
Count both parts
FINRA’s educational explanation of total return combines investment earnings with changes in value. The return calculation needs a defined period; a percentage for that period is not automatically an annual rate. Expenses and taxes also matter when evaluating what an investor keeps.
Consider this hypothetical illustration, with no fees, taxes, reinvestment or additional contributions. These are invented round numbers, not a security quote or a forecast.
| Item | Amount |
|---|---|
| Starting investment value | $100 |
| Distribution received and held as cash | $5 |
| Ending investment market value | $96 |
| Ending investment plus cash | $101 |
| Gain over the holding period | $1, or 1% |
The distribution was 5% of the starting investment. Total return in the example was 1%: the $5 payment was partly offset by a $4 decline in market value. If the ending investment value were $90 instead, the same $5 cash payment would leave $95 in combined wealth, a 5% loss over that period.
A useful income scorecard
Record the starting value, cash paid out, ending value and measurement dates together. Adjust the method if you add or withdraw capital; do not treat fresh contributions as investment profit. If a provider reports a total-return figure that already includes distributions, adding them again would double count.
Investor’s view: Income can serve a spending plan, but a spending plan still needs a balance-sheet check. I want the payment and the change in capital on the same page before I call a result successful. No distribution or future return is promised here.
Source and data date: FINRA, Key Concepts: Return and Rate of Return, 2017 educational guidance. Reviewed October 18, 2026. All dollar figures above are hypothetical.