Accounting for dividends in your P&L


When tracking P&L does anyone adjust their purchase price to account for dividends? For example, I have a stock I bought for $29 and now it’s $25. But in the time I’ve owned it I’ve received $7,000 in dividends. To make it easier to track my performance, I reduce my purchase price by $7 (I have 1,000 shares). Does this make sense?


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