During two historic, long and lackluster stock-market periods, the right kind of equity-indexed annuity would have outperformed the Dow Jones Industrial Average, including reinvested dividends
, according to Pete Winer, a chartered financial consultant with Covenant Reliance Producers LLC, Nashville, Tenn.
Be sure to include all reinvested dividends
and reinvested capital gains in your basis," says David Kahn, partner at New York accounting firm Goldstein Golub Kessler L.
Over the past decade, the proportion of stocks delivering a capital appreciation plus reinvested dividends
of at least that, has ranged between 10 per cent and 67 per cent of all companies.
Excluding reinvested dividends
, shareholders experienced a 139% return on their initial investment.
Another CPA said a client, about 75 years old, had kept meticulous records of the gifts and inheritances she received, the reinvested dividends
and money earned and spent since she was 16.
The cost basis includes the original cost plus all reinvested dividends
and any capital gains that have already been taxed.
Lipper figures include reinvested dividends
and capital gains but do not include sales charges.
23) Value of shares issued for reinvested dividends
548 N/A 178 N/A Net asset value: Beginning of period.
4 percent, including reinvested dividends
, marking the third straight year the benchmark rose more than 20 percent.
When you're calculating basis on securities sold last year, don't forget to add in reinvested dividends
and capital gains distributions.
Including reinvested dividends
, the increase was SEK 61 per share (68), or 24% in 2006.
02) Value of shares issued for reinvested dividends
12 N/A 563 N/A Net asset value: Beginning of period 132,014 6.