Re: Adjusting for Dividends

[ Q2 00 - Q2 01 Archive ] [ Current Message Board ] [ Archives ] [ Search ]

In Reply to: Re: Adjusting for Dividends posted by HarryH on January 26, 2001 at 17:19:13:

: : : : A number of my funds show precipitous drops on their graphs as a result of dividends. I thought these were supposed to be smoothed out. I go to Yahoo (Adjusted Historical) but nothing seems to change. Am I omitting a step some where?

: : : Hi Harry,
: : : Yahoo (Adjusted Historical) only adjusts dividends when it has them
: : : available. It doesn't have them for funds, only stocks. This would
: : : lead to the drops you see. If you record the distributions in FM, and then
: : : use the "Price + Dist." graph this will smooth out these dips.

: : : Thanks,
: : : Mark
: : : --
: : : Mark Beiley
: : :
: : : Fund Manager for Windows 3.1x/95/98/NT
: : :
: : :

: But Price + Distribution graphs the chart at higher prices than the actual NAVs & so distorts the picture. The right way, as you know, is to subtract the latest dividend from all previous prices.

Why is subtracting distributions from prior share prices correct, and
adding distributions to later share prices incorrect? Neither one show
the real price for all dates, but attempt to smooth out dips in the price due
to distributions.

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

Replies: