Capital appreciation for this purpose includes not only reported dividends but increases in share values, since such capital appreciation represents accessible cash to the shareholders because they can liquidate their holdings at any moment in time. 
Capital appreciation makes up a part of total return. The change in value of an investment over a given period, assuming reinvestment of any dividends and capital gain distributions, expressed as a percentage of the initial investment.  The total return includes dividends, capital gains distributions, and the increase in the net asset value of the property. 
Capital comes from heafodgilt "deadly sin, capital offense, and " heafdes þolian "to forfeit life." Appreciation from sense of "rise in value" from c.1790. Principalis "first in importance,".."money on which interest is paid;"