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Re: Adjusting for Dividends

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Posted by HarryH on January 26, 2001 at 17:19:13:

In Reply to: Re: Adjusting for Dividends posted by HarryH on January 26, 2001 at 17:14:23:

: : : A number of my funds show precipitous drops on their graphs as a result of dividends. I thought these were supposed to be smoothed out. I go to Yahoo (Adjusted Historical) but nothing seems to change. Am I omitting a step some where?

: : Hi Harry,
: : Yahoo (Adjusted Historical) only adjusts dividends when it has them
: : available. It doesn't have them for funds, only stocks. This would
: : lead to the drops you see. If you record the distributions in FM, and then
: : use the "Price + Dist." graph this will smooth out these dips.

: : Thanks,
: : Mark
: : --
: : Mark Beiley
: :
: : Fund Manager for Windows 3.1x/95/98/NT
: :
: :

But Price + Distribution graphs the chart at higher prices than the actual NAVs & so distorts the picture. The right way, as you know, is to subtract the latest dividend from all previous prices.



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