How dividends save the day when it comes to investing

Even over a short time period, dividends play an important role in safeguarding investors’ returns. Let’s look at how the MENA’s three main markets fared so far in 2017.
By Markets Chimp

4/13/17 7:17 AM

Gauging market performance using price return only is not a full reflection of what is happening in the market, especially when many companies distribute cash as dividends with high yields. This is why it is only fair to look at market’s performance (i.e. their indices in this case) in terms of total return which encompasses both price return and dividends. Let’s look at the MENA’s three main markets and how they fared so far in 2017: Egypt, Saudi Arabia, and the UAE’s Dubai.

  • Price return: The top performing in USD terms since the beginning of the year is still EGX 30 (up 5.02%), followed by DFMGI (up only 0.28%). On the other hand, TASI is the worst performer (down 1.50%)!​​​​​​​
  • Total return: Adding dividends to the picture can magnify the positive price return, reduce the negative price return, or turn it from negative to positive altogether. For these three markets, the picture remains the same, where EGX 30 leads (up 5.49%), followed by DFMFI (up 2.58%) and TASI (still down 0.53%).

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