The holding period return (HPR) is the rate of return of an asset or portfolio over a given investment period. It is caculated as: HPR = (Ending price - Beginning price + Dividends) / Beginning Price. Holding period return is a simple measure over a single period.
HPR does not take into account reinvestment income between the time dividends are paid and the end of the holding period.
Assume you purchase 1 share of Company Z today for $100, which does not pay dividends. In one year, you sell your share for $125. In this case, your holding period return is simply 25%.