I recently wanted to see a graph of a particular stock assuming dividend reinvestment. This seems like it would be a common thing to do, but neither Google nor Yahoo’s finance sites appear to have the capability. After a bit of searching, I found a way to do it.
So here, I’ve plotted $AAPL over the past two years with and without dividend reinvestment. Note that $AAPL first paid a divident in Augustof 2012, so it’s logical that the graph begins to diverge shortly after that. Currently the difference in return is about 4.3% over the two years.1
You can fiddle with this graph yourself. Or, starting from scratch, do the following:
- Create a chart for AAPL
- Set the range (above I used 2 years)
- Set “Type” to Thin Line (optional)
- In both the Overlays and Indicators sections, click “Clear All”
- Under Indicators, create a Price/Performance indicator with parameter _AAPL and set “Position” to “Behind Price”.
- Click “Update”
Interestingly, stockcharts.com appears to assume dividend reinvestment by default, while Google Finance and Yahoo Finance do not.
As always, if you spot any error, let me know and I’ll post a correction.