What encompasses the stock price appreciation plus dividends received over a specific period of time?

The concept of total return to shareholders encompasses both stock price appreciation and dividends received over a specific period of time. This metric is crucial for evaluating the overall performance of an investment in a company's stock. Stock price appreciation reflects the increase in the value of the shares held, while dividends represent the direct cash payments made to shareholders from the company's profits.

By combining both elements, total return provides a comprehensive view of the financial benefits received by shareholders. This information can inform investment decisions, as it reflects not just the market's performance but also the income generated from holding shares.

Other terms such as interest on equity and passive income do not encompass the same definition. Interest on equity typically refers to the cost of equity capital or the required return expected by equity investors, rather than the actual returns realized by shareholders. Passive income usually refers to earnings received from investments or projects not requiring active involvement, which could include dividends but does not detail the influence of capital appreciation. Net gains, while related to profit, lacks the specific linkage to dividend payments and stock price changes, making it a less precise term.