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ps2754
Lv 5
ps2754 asked in Business & FinanceInvesting · 1 decade ago

Average annual return of the S&P 500 without dividend reinvestments?

I know that I can get the average annual returns for the S&P 500 from the S&P website. But the returns listed there are the returns assuming that all interest and dividends are reinvested.

What would the returns be if someone were to take all interest and dividends as income?

Please provide source, and link to website, if possible.

Thank you!

Update:

Ranto - Thanks for trying to help me out, but the S&P methodology assumes that dividends ARE reinvested. Go to this link to their website and read it in their own words.

http://www2.standardandpoors.com/spf/pdf/index/SP_...

Update 2:

Specifically, see page 11 of the S&P document that states:

"Total Return and Net Return Indices

The index has a total return counterpart, which assumes dividends are reinvested in the

index after the close on the ex-date. On any given date t:

Total Return Multipliert =t - 1

t t

Index Value

[Index Value + Index Dividend Points ]

(6)

Total Return Index Valuet =

(Total Return Index Value t - 1) ∗ (Total Return Multipliert) (7)

Index Dividend Pointst =N

i Ex dividends Divisor i, t

1

i, t ) ( Shares) (Index − ∗ Σ=

(8)

3 Answers

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  • Ranto
    Lv 7
    1 decade ago
    Favorite Answer

    You are misinformed. The S&P index does not include reinvested dividends -- though they do provide a separate index tha tdoes include reinvestments. The link below will give you the index values since inception. You can calculate the returns easily.

    Source(s): http://finance.yahoo.com/q/hp?s=%5EGSPC Finance Professor
  • carris
    Lv 4
    4 years ago

    Sp500 Yearly Returns

    Source(s): https://shrinke.im/a0XTI
  • Anonymous
    1 decade ago

    there is no average return because it changes and it depends on your investment amount. if you have 1 share to 100 shares your reinvestment would be more shares than 1 share value. but if you take all the interest and dividends you cut short the investment. no one can give a average because of the risk of lost. you can add & subtract and make your decision. REITs are good if you only wants income from stocks. S&P is a fund which is for long term investments

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