Dividends Explained in Under a Minute

Why are stock dividends included towards total return when the dividend amount is offset by the simultaneous reduction in the stock price? Well, that the question kind of answers itself, right? Dividends are part of the return you get. So, why wouldn't you include them? Now, whether you reinvest them or not is a different question. It kind of depends on where you are in your life. If you're retired and you need the money to spend it, you're probably not going to reinvest it, but if you're still saving for retirement, you'll probably reinvest it. But, either way, it's part of the return you get, right? Uh So, the fact that the share price gets reduced by the amount of the dividend doesn't change the fact that that the dividend is real. You're getting money. So, it should definitely in your It's coming from an investment you've made, so it should certainly be included in your return.