• 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

Compounded Dividend Reinvesting

#1
Mutual Funds charted the power of reinvesting dividends in my father's generation when they showed the growth of a $10,000 investment with reinvested dividends.
 
As a dividend investor, I would like to have just as easy way to see this same compounded growth with ETFs and individual stocks.  I find gather this data cumbersome and time consuming put into Excel and plot, for example.
 
Have you found a web site that displays compounded returns for individual stocks and ETFs?  I would like to make  historical comparison with MFs.  Any suggestions from the Green Line Forum?
  Reply
#2
I agree. It would be useful for individual stocks too.
  Reply
#3
The performance charts at the following link are total return charts including any reinvested dividends:

https://stockcharts.com/freecharts/perf....6&O=011000

Sometimes there are hacks in the data, but it is generally good, especially for a quick screening.  You can plot indexes, mutual funds, ETFs and stocks all on one chart.

 
You can cross-check the numbers with Yahoo finance, but note that Yahoo also occasionally has hacks in their data.
  Reply
#4
Thank you for the suggestion.  However, total return of a security using re-invested dividends (buy and hold drip) is not obvious to me on the stock charts link.  What am I missing and where should I look for those charts for ETFs and stocks.
 
Best regards.
  Reply
#5
Johnez-  I maybe misinterpreting your ask - I thought the perfchart link that 
SilverAg47 - provided should serve your purpose with some minor tweaks. You can drag the timeline slider at the bottom (the one that shows "200 days") to the left until the horizontal axis starts at the desired year. Once this is done, the perfchart view and the standard Mutual Fund view should become identical. If the perfchart view shows x% gain, the Growth of $10000 will be (100 + x) * $10000.

 
I tweaked the perfchart to show VWIAX starting year 2013 (1437 days). The perfchart shows 43% gain, which is another way of saying $10000 will grow to $14300. The picture from perfchart is as follows:
   
  Reply
#6
I like the Dividend Channel's DRIP returns calculator:
https://www.dividendchannel.com/drip-ret...alculator/

You can look up an individual stock or ETF and chart any length period, with or without reinvested dividends such as PFE below. You can also graph a comparison it to other stocks or indices:
     
   
  Reply
#7
Thanks for sharing the DRIP calculator link. I think this presentation is great. At the same time, I'm noticing some discrepancy in the numbers here, especially for securities whose distribution includes not just dividends, but gains and return-of-capital. I think the DRIP takes "dividend" literally and includes only that in the return calculation. This is different than regular MF return charts where the reinvestment is done on the entire distribution (that includes dividends as well as other components). One needs to keep this in mind when using the DRIP calculator.
 
E.g., VWIAX on DRIP shows different numbers than what's shown on Morningstar, Fidelity, or perfcharts. I'm guessing that it's because VWIAX distribution also includes LT/ST gains and those aren't accounted for in DRIP (hence the return seems to be lower compared to the actual reinvested return). Did you notice this too?

   
  Reply
#8
waltworks Yes, that seems to be the case. It seems reliable with stocks/etfs and dividends though. Maybe they have a different/better tool for Mutual Funds that includes capital gains; I haven't checked their site for one yet. But this question was about dividends with ETFs and stocks.
  Reply
#9
(12-04-2018, 07:30 PM)Catbert Wrote: waltworks Yes, that seems to be the case. It seems reliable with stocks/etfs and dividends though. Maybe they have a different/better tool for Mutual Funds that includes capital gains; I haven't checked their site for one yet. But this question was about dividends with ETFs and stocks.

Thanks! I played a bit more with the site and seems like for ETFs, the site does take care of all distributions, including LT/ST gain. E.g., the return of SLYG between 12/5/17 and 1/17/18 is correctly showing as 4.92% and it is including the entire distribution amount ($2.33/share) of SLYG that was given on 12/15/2017. LT gain was the biggest portion of that distribution ($2.03/share). So the problem seems to be with MFs only.
 
RE "this question was about dividends", I think the terms dividends and distributions are used interchangeably in the context of reinvestment, total return, or growth of 10K investment. ETF distribution can legitimately include capital gains (if it's an active ETF or if composition of the tracking Index changes). So it is important to make sure that the total return computation of a fund (ETF or MF) includes the entire distribution, not just the dividends. Looks like the DRIP calculator is doing it right for ETFs, but not for MFs. I'll try to contact Dividend Channel when I get a chance ( (516) 605-2277) and see if I can get some insight on the MF issue.
  Reply
#10
The mutual fund (and probably ETF charts should include effect of fees as well - so I assume there is a way to check whether individual stocks and mutual funds being displayed in the same system do or do not show the bottom line total return?
  Reply


Forum Jump:


Users browsing this thread: 2 Guest(s)