Would you please explain your statement which was the following "There's a reason this insitution does so well, which is why I follow it."
How is this insitution doing well when a share of stock is below what it was in 1998? They have lowered earnings estimates for this year and the estimates for the 2005 year are not that great an increase. A $100 investment in their stock on 12/98 would be worth $110.95 12/03 with dividends reinvested according to the proxy.
I think you are wrong. $100 invested in BBT stock in 12-98, that is 5.0 years ago and figuring a dividend average of bout 3.5% would give you a return on $100 plus $19 profit, bout. almost twice the return you have calculated. (Using my TI-BAIII)
Are you saying that BBT has put bad figures in their proxy material? These were not my figures they were in BBT's proxy material dated March 25,2004 on the bottom of page 36. It states that $100 invested in stock 12/98 including reinvestment of dividends would be worth $110.95 on 12/03. I believe I stated in the original post that the above figures were from the proxy.
You forgot to include the fact that a share of stock was worth $40.31 on 12/98 and the same share of stock was only worth $38.56 on 12/03.They have also not averaged a 3.5% dividend for the last five years.
Oh, by the way that same share that was only worth $38.56 on 12/03 is now worth $34.25 end of day May 17,2004. If the proxy is correct then the $100 investment would only be worth approximately $101 today.
This means you would have a roughly 1% total return for almost 5 1/2 years.