Take the 2-minute tour ×
Quantitative Finance Stack Exchange is a question and answer site for finance professionals and academics. It's 100% free, no registration required.

Currently, I have the following transactions.

01/01/2000 I used $1000 to purchase stocks
30/05/2000 I received $100 stock dividend.
31/12/2000 I sold all stocks for $2000.

Hence, if I use XIRR to calculate

01/01/2000  -1000 (Invest in stock)
30/05/2000  100 (Received dividend)
31/12/2000  2000 (Sales in stock)

My yearly return is 1.157284223 (115.73%)

From the above calculated XIRR, may I know how much % does the received dividend contribute to the total XIRR? Is there any proper formula to calculate so?

I wish to get x & y figure.

I am having annualized return 115.73%. Out of this 115.73% annualized return, x% is contributed by dividend gain, y% is contributed by stock sales.

The reason I ask so, as I'm currently building a portfolio performance chart.

enter image description here

I need to break down my yearly XIRR to different segments (dividend, sales gain, paper gain)

share|improve this question

2 Answers 2

Not 100% sure but does the following work?

Dividend gain:

-1000 purchase 100 dividend 1000 sell (ignoring sell profit)

Sell profit: -1000 purchase 2000 sell

share|improve this answer
    
I tested using [01/01/2000, 31/12/2000, 30/05/2000] with [-1000, 1000, 100], it gives 0.10 (10%)? Should I expect 15.73%? –  Cheok Yan Cheng Jul 14 at 2:44
    
Yes it only would work out if both dividend and sale happens on 31/12/2000 I'll have to think some more on this. –  tario Jul 14 at 16:48
    
Actually looking at it a bit more, if I change the end sell value to 4000 I'm getting 3.234. –  tario Jul 14 at 19:52
    
doing some more examples only dividend profit: -1000 100 1000 => 0.1061 your example: -1000 100 2000 => 1.1572 –  tario Jul 14 at 20:30
    
doing some more examples a) only dividend profit: -1000 100 1000 => 0.1061 b) your example: -1000 100 2000 => 1.1572 c) double sell profit: -1000 100 4000 => 3.2340 as I didn't change the dividend, shouldn't the dividend profit always be the same (0.1061)? Which would mean that the sales account for a) 0 b) 1.0511 c) 3.1279 of profit –  tario Jul 14 at 20:42

You use 4 number (dividend/investment at first date, sales/investment at second date) to build one number.

There is an infinite number of possibilities to obtain a given results so no you can't give the dividend part with only XIRR.

If you have the investments/dividends/sales/dates well you can remove the sales and use only the dividends if you want the dividends part.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.