Reinvested dividends are a major contributor to overall equity returns

The Impact of Dividend Reinvesting

Price Index Vs. Total Return Index  

Dec. 1969 - Dec. 2014

Performance in any given year is driven by capital appreciation, but long-term returns are largely the
result of reinvested dividends.

The graph on the left illustrates the returns for the MSCI Canadian Index on a total return basis versus price appreciation only. The difference between these two lines is the dividend income received and reinvested over time. For the timeframe shown, dividends and dividend reinvestment represented over 45% of the total annualized return.