I was doing a caculation of my portfolio returns against the STI, and I realised the STI is not adjusted for dividends (or is it)?
Is there a way to find out the dividend-adjusted STI figure?
Yes I'm wondering the same thing as well. I wonder how you can calculate that on a monthly basis. Also it would be nice if you guys know where to find it for the hang seng index as well.
I can't remember the average STI index companies dividend so just saying the methods.
Just take the STI index number of particular years and compound with the est. average dividend %.
Option 1
Example STI Index 3000. Let say 2 years ago. Assume dividend 3%.
So just Compound 3K value for 2 years using 3%. answer: 3183. assuming same STI Index for both years.
Most likely is different, so each new year add the delta before compound.
Is just an average estimate but likely good enough.
Option 2
This example is more tedious to collect but similar to Option 1 basic. Need each year dividend %.
Each new year add the delta of the index before compound.
Compound one year by one year per the dividend % in the yearly order. This the ideal answer.
Cory
(07-09-2012, 08:48 AM)snowcap Wrote: [ -> ]I was doing a caculation of my portfolio returns against the STI, and I realised the STI is not adjusted for dividends (or is it)?
Is there a way to find out the dividend-adjusted STI figure?
If you are ok with a figure since 2002, you could use the StreetTracks STI ETF for a reasonable proxy.
http://www.streettracks.com.sg/etf/fund/..._STTF.html
There's a performance chart with and without dividends.
The average dividend yield across all the stocks that form either the STI and SiMSCI was 3.0% in 2011.
Source:
Dividend yields in 2011
The computed dividend and change figure is meaningless unless you can measure your own and compare to it.
XIRR should cover that as below.
[Image: STI+Performance.jpg]
After doing this, i am quite amaze if my Math is about right.
Most people do not achieve 23% XIRR returns ! You are a lot better off investing in STI Index for 2012.
In a ball park figure, a person who invest S$100K earned S$23K in annualized 2012 full year.
Cory
As i am quite excited on it. I just found another surprise if we combine year 2011 and 2012 STI XIRR performance.
[Image: STI+Performance-2.jpg]
If you are vested starting 2011 Jan till today in STI Index, your return is actually negative even after dividends.
INVESTMENT in STI Index is all about timing.
Cory
(08-09-2012, 05:51 PM)corydorus Wrote: [ -> ]The computed dividend and change figure is meaningless unless you can measure your own and compare to it.
XIRR should cover that as below.
[Image: STI+Performance.jpg]
After doing this, i am quite amaze if my Math is about right.
Most people do not achieve 23% XIRR returns ! You are a lot better off investing in STI Index for 2012.
In a ball park figure, a person who invest S$100K earned S$23K in annualized 2012 full year.
Cory
As i am quite excited on it. I just found another surprise if we combine year 2011 and 2012 STI XIRR performance.
[Image: STI+Performance-2.jpg]
If you are vested starting 2011 Jan till today in STI Index, your return is actually negative even after dividends.
INVESTMENT in STI Index is all about timing.
Cory
I wonder where do you get the 2 numbers?
Dividend (31 Dec 2011) = 73
Dividend (7 Sept 2012) = 82
The rest seem right to me.
(08-09-2012, 06:31 PM)CityFarmer Wrote: [ -> ] (08-09-2012, 05:51 PM)corydorus Wrote: [ -> ]The computed dividend and change figure is meaningless unless you can measure your own and compare to it.
XIRR should cover that as below.
[Image: STI+Performance.jpg]
After doing this, i am quite amaze if my Math is about right.
Most people do not achieve 23% XIRR returns ! You are a lot better off investing in STI Index for 2012.
In a ball park figure, a person who invest S$100K earned S$23K in annualized 2012 full year.
Cory
As i am quite excited on it. I just found another surprise if we combine year 2011 and 2012 STI XIRR performance.
[Image: STI+Performance-2.jpg]
If you are vested starting 2011 Jan till today in STI Index, your return is actually negative even after dividends.
INVESTMENT in STI Index is all about timing.
Cory
I wonder where do you get the 2 numbers?
Dividend (31 Dec 2011) = 73
Dividend (7 Sept 2012) = 82
The rest seem right to me.
This is computed from dividend % which is about 3%. slight differences between each year. And then obtain the absolute from the average STI Index of open/close. Don't read too much into it because on broader estimate perspectives.
If you want to track your "barang,barang", try this thread--- "What is a realistic return on value investing?
Enjoy.
