Re: Week one of the ten best stocks



"lubow" <lubow@xxxxxxxxxxxxxxxxxxxx> wrote in message
news:%Czqh.2877$Wz.2659@xxxxxxxxxxx

I'll do my best to report back at the beginning of every month.
Hopefully, I'll have the time to use reinvested dividends in calculating
the returns.

For example, here are several years of monthly PCG prices, including
adjustments for dividends:
http://finance.yahoo.com/q/hp?s=PCG&a=00&b=1&c=2000&g=m

I hear ya, Mark, but your approach only gives us the amount of dividends
per share. I still need to multiply that figure by the number of shares
and divide by the last stock price of the payment date then add the shares
to the share balance. And I also need to do this for about 30 different
stocks.


Doesn't the last column ("Adj Close") include the effects of dividends?

So to use reinvested dividends in calculating the returns, just get the
percent change in the "Adj Close" price.

For the PCG example linked to above, the return including reinvested
dividends for January-December 2006 is:
= Dec 2006 adj close / Dec 2005 adj close - 1
= 47.33 / 35.97 - 1
= 31.6%

That return includes the effects of reinvesting the dividends.

I don't see why you'd need to multiply the dividend by the number of shares
and divide by the last stock price of the payment date then add the shares
to the share balance. Just use the closing price adjusted for dividends and
splits listed in teh table.


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