facebookI have a silly question that needs an answer! Whenever you ask someone how well is a company/stock doing they always throw out a %. But is that % consisting of dividends only or capital gain included too? - Seedly

Anonymous

18 Aug 2020

βˆ™

Random

I have a silly question that needs an answer! Whenever you ask someone how well is a company/stock doing they always throw out a %. But is that % consisting of dividends only or capital gain included too?

For example people always say the S&P 500 gains 10% on average, is the 10% consisting of both Capital Gains and Dividend Yields for the year? thanks.

Discussion (3)

What are your thoughts?

Learn how to style your text

Here my silly answer:

this really depends on the person or company that calculates/publishes the answer and it should then be stated whether the dividends are included

also f.ex for the indices there are 2 types:

price index (only stock price) versus total return index (including also the dividends)

of course total returns should be the more important number

Aidan Neo

18 Aug 2020

Financial Services Consultant at Manulife Financial Advisers

By default, the % gain should take reference of their current position so I would say excluding dividend yield unless the dividends were reinvested automatically. Usually, total return (capital gain + dividend yield) require separate calculation.

Duane Cheng

18 Aug 2020

Financial Consultant at Prudential Assurance Company Singapore

Hi there,

Usually it's in relation to when they purchased their position, with relation to capital ...

Write your thoughts