Annual return on share holding
Posted: March 22nd, 2018, 12:40 pm
I hope this the right forum for my question.
I have share holdings with 2 separate brokers - one automatically reinvests dividends and the other just leaves them as cash. The shares holdings were originally built up from Motley Fool Share Advisor recommendations, but I'm ashamed to say I have just left them unattended for the last few years and have little idea whether they have been a good investment compared to a share index tracker.
I would like to understand better how the shares have actually performed over the years, and I think the way to do this is calculate the Annual Return for each company's shares. I know that this can be done by
((ending_value - beginning_value) ^ (1 / num_of_years)) - 1
but it is complicated by multiple dividends being paid on various dates, some of which will have been automatically reinvested by buying new shares at that time. And some of the dividends will have been left as cash, so I guess there would need to be some sort of adjustment assuming that the cash was left in a savings account at whatever the savings interest rate was.
So it looks quite tricky to do this accurately.
Can anyone advise how to do this - or maybe there is some software that would do this for me ?
Thanks in anticipation.
I have share holdings with 2 separate brokers - one automatically reinvests dividends and the other just leaves them as cash. The shares holdings were originally built up from Motley Fool Share Advisor recommendations, but I'm ashamed to say I have just left them unattended for the last few years and have little idea whether they have been a good investment compared to a share index tracker.
I would like to understand better how the shares have actually performed over the years, and I think the way to do this is calculate the Annual Return for each company's shares. I know that this can be done by
((ending_value - beginning_value) ^ (1 / num_of_years)) - 1
but it is complicated by multiple dividends being paid on various dates, some of which will have been automatically reinvested by buying new shares at that time. And some of the dividends will have been left as cash, so I guess there would need to be some sort of adjustment assuming that the cash was left in a savings account at whatever the savings interest rate was.
So it looks quite tricky to do this accurately.
Can anyone advise how to do this - or maybe there is some software that would do this for me ?
Thanks in anticipation.