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?
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Sign up to join this communityAccording 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?
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