The S&P 500 Rose 30-Fold Since 1988. Reinvested Dividends Made It 67-Fold.

A $10,000 stake in the S&P 500 (SNPINDEX:^GSPC) at the close on Jan. 4, 1988, was worth around $300,000 at the close on Monday, Oct. 26. That's a 30-fold gain, or about 9.2% a year, from the index's price alone. But price was just part of what the index paid its owners. With every dividend reinvested, the same $10,000 rose about 67-fold, to roughly $673,000, or about 11.5% a year. That means dividends added a little over 2 percentage points a year. In nearly 39 years, this slim edge more than doubled the final balance.

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