Question: How are dividends accounted for in stock performance comparisons?
A company's stock price movement is often seen as a way of measuring the performance of a stock.
However, paying out dividends decreases stock price increase, since it decreases the assets of a company. If a stock has a 5% yield, then I would expect the stock to rise 5% less than a company with similar performance but no dividends.
My understanding is that when I look at the performance summary of a stock ticker (how did it fare in the last 1m, 3m, 1y, 5y, etc), the dividends disappear. This would make dividend paying companies look weaker than they actually are.
Is my understanding correct, or are the dividends somehow acounted for in stock charts and statistics?
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