Sensex is above 22,000 ! Surprised ?
The Total Returns Index, not known to many, is nothing but Sensex plus the total dividends announced by sensex companies which are assumed to be reinvested. Though not many are interested in dividends and are concerned about only in the rise in share prices, there is a surprise for them.
The chart below shows dividends are definitely not to be ignored. Interestingly the Total Returns Index is currently above 22,000, while the BSE Sensex is far from 21,000 achieved in Jan 2008.
Hence before calculating your stock returns, check out how much dividends you have received to get the exact returns. Dividends do matter.