When talking about stock market growth, do the figures include dividends?

[tzhu07]

This has always been unclear to me.

When an article states the stock market has been growing at around 7% per year, is that only capital gains? Or does it include dividends? And if dividends, are we assuming they are immediately reinvested dividends?

 

[T'hain Esh Kelch]

Capital gains. Stocks usually take a dip the second that dividende has been payed out, to correct for the value of the stock.