Accenture has outperformed the market over the past 90 days by 13.89%, generating a 19.5% return for its investors over the time period. Now, given this information, it may seem like price appreciation alone is the best way to have made money on this stock, that's not actually the case.
This is because Accenture has been paying out a regular cash dividend every year over the past 10 years. Investors who fail to account for dividends are missing a key ingredient in calculating a stock's profitability over time.
Calculating $100 Cash Growth in Accenture Since 2011
Accenture's dividend payout has changed over time, but it is common for a companies dividend payouts to fluctuate from year to year. Currently, Accenture pays out a $3.52 per share dividend.
When looking at Accenture's price and dividend history since September, 2011, we can use the formula above to calculate Accenture's total return since September, 2011. Based on those inputs, a $100 investment in Accenture would be worth approximately $779.91 today.
In other words, you would have more than 70X'd your money.
The following chart shows how your money would have grown over the years, with and without re-investing dividends.
By looking at the price chart of ACN's common stock one can see that price appreciation alone misses a fair bit of value if one's considering holding the stock for a long period of time. This is the case for other equities too; check out all Benzinga's dividend data here or in an enhanced view on Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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