How to calculate STI returns with dividends?

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#1
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?
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#2
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.
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#3
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

Just my Diary
corylogics.blogspot.com/


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#4
(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.
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#5
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
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#6
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

Just my Diary
corylogics.blogspot.com/


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#7
(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.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#8
(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.

Just my Diary
corylogics.blogspot.com/


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#9
If you want to track your "barang,barang", try this thread--- "What is a realistic return on value investing?
Enjoy.Big Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#10
I found this, not sure if it is useful much.
http://www.analystz.hk/options/hsi-pe-di...uation.php
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