What Did a Stock Really Pay Investors? YCharts Shows the Whole Picture

Here’s a question that’s surprisingly tricky to answer: If you invested $1,000 in Procter and Gamble (PG) on January 2nd, 1996, how much was that investment worth at the end of Q2, 2011 (July 1, 2011)?

A couple of clicks on YCharts will show you that the stock price went up 209.29% over that time period. The stock that you paid $1,000 for is now worth $2,092.90. Unfortunately, something is missing from that number. Procter and Gamble - like more than 50% of stocks traded on the NASDAQ, AMEX and NYSE - pays dividends. They need to be counted too.

But how much is missing? Before looking at the answer, take a quick guess. There are about 15 years of dividends and let’s assume that those dividends were reinvested and Uncle Sam didn’t get to take his cut. Got your number?

Procter & Gamble Total Return Price Stock Chart by YCharts

With dividends reinvested (and without taxes) Procter and Gamble returned 326.80% over that period. That is an extra 117.51% over price appreciation alone. In dollar terms, you earned $1,175.10 more from reinvested dividends.

That is important information, and YCharts is delighted to be the first company to offer charts of Total Returns where users can define a holding period. Now individual investors can compare stocks to each other as they should be compared - looking at all of the returns that the stock provides.

To access total returns, search for any company, click on the price chart or “Interactive Charts” tab, and select “Total Return Price” from the “Main Metric” dropdown menu and check the “View % Chg” box.