What is the difference between dividend and total return? Why are the numbers different?

Both terms relate to the returns you may receive from an investment, but they represent different concepts:

  • Dividend is the income or distribution paid out to the investors—such as interest from bonds or dividends from funds. It’s the portion of earnings distributed directly to you.
  • Total return is the sum of all gains generated by the assets in your portfolio, including any change in value of your investment (capital gains or losses), dividends and realized cash payouts.  

In short, dividends are part of your total return, but total return gives you the full picture—combining both income and growth.
There can be situations where the investments may have given higher dividends (contributing to the payout) but might have decreased in their market value, affecting the total return. Conversely, an investment might appreciate in value but might not distribute much income.