So - We all know that the devil is in the details! Right? I mean - that's got to be the 3rd oldest saying in the universe!
So I was looking at all these "total return" numbers and trying to find the differences in calculations from one place to another... and I still haven't figured it out -- but something else has always bothered me on the Schwab website.
When you pull up a total return tab in Schwab -- it is accompanied with a chart showing the "hypothetical growth of 10,000" -- and I always wondered why the chart never quite "matched up" with the TOTAL RETURN numbers shown.
I mean - if 10 grand is shown growing to 15,000 grand over 5 years -- that's 50% growth - but the total return number might say it "returned" 100%...
I then actually read the "fine print".... the Total Return is calculated using reinvested dividends.... The GRAPH is only showing share price growth with NO reinvested dividends. Go figure.
The Total Return is the rate of return representing the price appreciation of a stock with cash dividends reinvested on the pay date for the most recent 1, 3 and 5 fiscal years.
This growth of 10,000 graph represents the growth of a hypothetical investment of $10,000. It does not assume reinvestment of dividends with capital gains.