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

Discussion in 'Community Discussion' started by tzhu07, Apr 22, 2017.

  1. tzhu07 macrumors regular

    tzhu07

    Joined:
    Nov 12, 2008
    #1
    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?
     
  2. T'hain Esh Kelch macrumors 601

    T'hain Esh Kelch

    Joined:
    Aug 5, 2001
    Location:
    Denmark
    #2
    Capital gains. Stocks usually take a dip the second that dividende has been payed out, to correct for the value of the stock.
     

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