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Performance Table: Capital Appreciation and Dividend Income Sysco Corp
The associated performance results with the earnings and price correlated graph, validates the above discussion regarding the two components of total return: Capital appreciation and dividend income. Dividends are included in the total return calculation and are assumed paid, but not reinvested.
When presented separately like this, the additional rate of return a dividend-paying stock produces for shareholders becomes undeniably evident. In addition to the 8.1% capital appreciation (Closing Annualized ROR), long-term shareholders of Sysco Corp would have received an additional $124,467.36 in dividends that increased their total return from 8.1% to 9.5% per annum.
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