Monday, February 20, 2006

Some interesting figures

I read a few interesting figures recently and here they are.

There was a survey done and one of the questions was how much have dividends/payouts contributed to overall stock returns. The average answer was 5-20% of total overall stock returns. The return contributed to dividends is actually around 65% and this assumes compounding of the invested dividends. Even if you take out the effects of compounding, payouts still count for 40% of the total return.

Within the last twenty years or so, dividend paying stocks have outperformend non-dividend paying stocks by almost 8%.

This next part is from the Wall St Journal (from a few weeks ago).
One dollar invested in the S&P from 1926 to 2005 would be worth about $2655.
This figure goes down drastically if you remove the effects of inflation, taxes, and trading costs. The same dollar would only be worth $46.59

In other news, my net worth is having a tough month. I've increased it by about $500 so far (with one more paycheck to go), but I had to deal with a few big expenses. Why does it seem that when I was in college I didn't have these big expenses, and now I have to deal with getting new tires and fixing my car? I also planned a small trip for March.


Anonymous said...

gotta happen one day, better now than in college since you got good money rolling in.

Kirby on Finance said...

Those figures on dividends are really interesting. I've made a move recently to make sure that I'm invested in companies which offer at least a 2.5% dividend.