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Heading For The Exit Lane (avc.blogs.com)
14 points by wave on June 28, 2008 | hide | past | favorite | 5 comments



Returns in the 70s weren't quite as bad as the DJIA graph suggests, because the companies in that average would have been paying substantial dividends.


I thought that the DJIA divisor was adjusted for dividends so that the pre-dividend and post-dividend index values were the same (essentially, acting as if investors took any dividend and re-invested it by buying shares of the DJIA constituent companies).


It sounds like they only consider stock dividends that are effectively a form of split.


Anyone has the article he's talking about? Scribd won't let me to consume it.





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