In France, dividends are subject to the flat tax (prélèvement forfaitaire unique, PFU) of 30%, or optionally to the progressive income tax scale after a 40% allowance. This reduces the net return received by the investor.

The dividend yield is calculated by dividing the annual dividend by the share price and multiplying by 100. For a stock at €100 with a €5 dividend, the calculation is (5 / 100) * 100 = 5%. This method allows comparison of companies' distribution policies.

Total shareholder return (TSR) incorporates the capital gain realized upon selling the securities and the dividends received. For example, for a stock purchased at €80, sold at €100, with a €4 dividend, the TSR combines a 25% capital gain and a 5% dividend yield, totaling 30%.

The yield on cost compares the dividend to the historical purchase price. If the current share price has risen since acquisition, this yield may actually be higher than the current yield.

The real return is obtained by subtracting the inflation rate from the nominal return. For example, a nominal return of 8% with inflation of 3% gives a real return of 5%, which may be lower than the nominal return if inflation is high.

Dividends are regular income, capital gains come from selling securities, and inflation affects purchasing power. For example, dividends are a component of nominal return.

Studies show that 82% of the S&P 500's total return since 1960 has come from reinvested dividends. This illustrates the snowball effect of reinvested dividends, which significantly amplifies overall performance.

The current yield is the ratio of the annual dividend to the current share price, expressed as a percentage. It allows investors to assess a stock's attractiveness for those seeking regular income.