Capital gains yield is the percentage price appreciation on an investment. It is calculated as the increase in the price of an investment, divided by its original acquisition cost. For example, if a security is purchased for $100 and 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.