I'm trying to calculate a portfolio's value using 2 types of calculations. I've tested the calculations on Visa's Feb 21' stock prices.
Starting Value: 10k
Jan 29,2021 Adjusted Price: 192.95
Jan 29,2021 Close Price: 193.25
Feb 12,2021 Close Price: 209.96
Feb 26,2021 Adjusted Price: 212.39
Feb 26,2021 Close Price: 212.39
Using adjusted close to calculate the performance
Monthly Performance: ((212.39 - 192.95) / 192.95) = 10.0751490%
Ending Value: 10000 * (1 + 0.100751490) = $11007.5149
Calculating shares + reinvesting dividend
Starting shares = (10000 / 193.25) = 51.74644243
Dividend purchased shares = (0.32 * 51.74644243) / 209.96 = 0.078866744
Total Shares = Starting shares + Dividend purchased shares = 51.82530917
Ending Value = Total Shares * Feb 26 Close Price = 11007.17742
Attached screenshot of calculations:
I know the numbers are pretty close but is there a reason why these ending values aren't matching? Reason I'm curious is because over a 10Yr time horizon + larger starting value the numbers can be quite substantial. Just trying to wrap my head on what could be causing a discrepancy between both calculations.
Thanks in advance!