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Performance Table Archer Daniels Midland Co.
The associated performance results with the earnings and price correlated graph, validates the above discussion regarding the two components of total return, capital appreciation and dividend income. Dividends are included in the total return calculation and are assumed paid, but not reinvested.
When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 4% capital appreciation, long-term shareholders of Archer Daniels Midland Co. would have received an additional $26,656.82 in dividends that increased their total return from 4% to 5% per annum.
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