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Technology Stocks : LSI Corporation

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To: Jock Hutchinson who wrote (17769)4/8/1999 2:40:00 PM
From: sea_biscuit  Read Replies (1) of 25814
 
Btw, I think I noticed a major goof in these charts -- re-invested dividends! And of course, these matter a lot in the case of companies that keep increasing their dividends.

As far as I can tell, the chart seems to show only price appreciation. I realized this when I plugged in JNJ. The chart shows an appreciation of 429% for JNJ for the 100-month period from Dec 1990 till now. However, the numbers I have show JNJ to have an appreciation of 730% (including re-invested dividends) for the ten-year period Jan 1988 to Dec 1997.

Considering that JNJ has continued to rise through all of 1998 and also that its gains were not particularly concentrated in the 1988 to 1990 time-frame, I think that unless we account for the effect of re-invested dividends, our calculations will be wrong and the comparisons with LSI (or any other stock that does not pay dividends) could be seriously flawed.
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