Capital gains yield is the percentage price appreciation on an investment. For example, if an investment is purchased for $100 and it is later sold for $125, the capital gains yield is 25%. If the price of an investment falls below its purchase price, there is no capital gains yield.
This concept does not include any dividends received; it is only based on changes in the price of an investment. To calculate the total return on a share, an investor must combine the capital gains yield and the dividend yield.