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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.

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

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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

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  • $\begingroup$ 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%? $\endgroup$
    – Cheok Yan Cheng
    Jul 14 '14 at 2:44
  • $\begingroup$ 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. $\endgroup$
    – tario
    Jul 14 '14 at 16:48
  • $\begingroup$ Actually looking at it a bit more, if I change the end sell value to 4000 I'm getting 3.234. $\endgroup$
    – tario
    Jul 14 '14 at 19:52
  • $\begingroup$ doing some more examples only dividend profit: -1000 100 1000 => 0.1061 your example: -1000 100 2000 => 1.1572 $\endgroup$
    – tario
    Jul 14 '14 at 20:30
  • $\begingroup$ 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 $\endgroup$
    – tario
    Jul 14 '14 at 20:42
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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.

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