Total Return Price

The total return price allows investors to view the performance of a security inclusive of price appreciation, dividends/distributions and less the expense ratio. YCharts offers 2 methods for calculating total return (see Total Return Level). Both methods assume that all dividends are reinvested and that no taxes were collected. Both methods also account for stock splits and expenses, but not sales charges. The specific process for total return price is outlined below:

Total Return Price:

The prices in this series are adjusted on dividend ex-date by reducing the price prior to the dividend payment by applying a dividend adjustment factor calculated as (1 - Value of Dividend/ Previous Day's Close Price).

Using this method the Total Return Price will always be equal to the Price after the most recent dividend but always lower than the Price prior to any dividend payments. By calculating the percentage change of the Total Return Price between any two points one can see the performance of the security including the re-invested dividends.

With Total Return Price, the regular "price' of a security will match at the end of the history because they are adjusted from the end.

Total Return Price = Actual Price x Split Factor x Dividend Adjustment Factor

Split factor = 0.5 for a 2 for 1 split, 0.33 for a 3 for 1 split, etc.
Dividend Adjustment Factor = (1 - Value of Dividend/ Previous Day's Close Price) depending on method as outlined above.

Note: the split and dividend factors are cumulative, so a stock that paid 4 dividends during a year, will have 4 Dividend Adjustment Factors multiplied together for prices that are more than 1 year old.