According to morningstar

the growth rate for SPY in 2014 was 13.46%.

Does this include the dividend yield of SPY ~1.87% or do we need to add this number to the 13.46? enter image description here


That includes the dividend yield.

From Morningstar directly:

Annual Returns

Annual total returns are calculated on a calendar-year and year-to-date basis. Total return includes both capital appreciation and dividends. The year-to-date return is updated daily.

For mutual funds, return includes both income (in the form of dividends or interest payments) and capital gains or losses (the increase or decrease in the value of a security).

Source: http://www.morningstar.com/InvGlossary/annual_returns.aspx

And anecdotally:

Although most financial media sources will list 11.74% as the S&P 500 index's return in 2014, an investor reinvesting dividends in the S&P 500 would have theoretically done even better: 14.04%.

Source: http://seekingalpha.com/article/2791755-2014-s-and-p-500-return

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  • oops..why do i need to reinvest the dividends to get better yield? if the stock returns 11% in capital appreciation and the yield is 3%, then my ROI is 11 = 3 = 14% regardless of whether i reinvest, correct? I guess i am ignoring interest and inflation, but generally speaking. – Victor123 Mar 24 '15 at 17:26
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    Reinvested dividends benefit from the stock growth, and they earn more dividends, which earn more dividends, etc. Compounding! – ScottMcP-MVP Mar 24 '15 at 18:04
  • Thanks. One more question...this yield is after the S&P fees,correct? – Victor123 Mar 27 '15 at 19:57

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