Timeline for How do I factor dividends and yield into the performance of a security?
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May 6, 2011 at 12:44 | comment | added | Ralph Winters | Both good comments. I was referring to the simple case in which you measure the return from point A to point B. Anyone know any chart sites which actual do the above? | |
May 6, 2011 at 4:00 | comment | added | JTP - Apologise to Monica♦ | Hmm. I guess hyper-correct would be to adjust the number of shares as if purchased with each dividend. Just accounting for dividends on the side will eventually have half stock / half cash and not truly reflect the compound growth of the stock. | |
May 6, 2011 at 2:06 | comment | added | Havoc P | To be super-correct you should adjust the dividends for time value of money (interest earned keeping the dividends invested after you get them) when doing this calculation, but it probably doesn't make a big difference unless it's over a long timespan. See also money.stackexchange.com/questions/8129/… on computing investment returns. | |
May 5, 2011 at 20:21 | history | answered | Ralph Winters | CC BY-SA 3.0 |