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Investment Analysis Clubs / The BMW Method


Subject:  Re: Charts -- with Yahoo data Date:  3/13/2007  7:20 AM
Author:  SubGuy Number:  21894 of 42301

Actually, this is a great development. The dividend-adjusted prices reflect real returns to shareholders, whether the company pays no dividend, a small dividend, a large dividend, or sporadic dividends.

Remember when MSFT paid out $3 per share? That led to a huge drop in the share price (about... $3!) that had nothing to do with the value of the ongoing business. Still, if anyone had been waiting for that drop in price, they might have bought the stock based on nothing at all.

Dividend-adjusted prices take all this into account. This is a good thing.

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