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A comment on Microsoft Shares Soar to Record on Earnings Boost From Cloud. Parent comment

Re:Microsoft Shares Soar to Record on Earnings Boost From Cloud by WalterBright on Friday October 21, 2016 @03:16PM (#12763662)
Consider that Microsoft started paying dividends after 2000, a yield of about 2.5%. A rough calculation of that compounding for 16 years is 150%.
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Re:Microsoft Shares Soar to Record on Earnings Boost From Cloud by MagnumOpus on Friday October 21, 2016 @05:42PM (#12765131)
2.5% compounded over 16 years is exactly 48.5%, nowhere near 150.
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Re:Microsoft Shares Soar to Record on Earnings Boost From Cloud by WalterBright on Friday October 21, 2016 @08:25PM (#12766162)
You're right, my mistake.
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Re:Microsoft Shares Soar to Record on Earnings Boost From Cloud by jeffshek on Saturday October 22, 2016 @08:42AM (#12768435)
But you're compounding the 2.5% only with itself. If you had reinvested the dividend back into the stock (common), the return is higher than 48.5%.
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Re:Microsoft Shares Soar to Record on Earnings Boost From Cloud by pesenti on Saturday October 22, 2016 @11:49AM (#12769149)
No. 1.025^16=1.48 - that's the reinvestment scenario. What you describe, no reinvestment, is just 2.5%*16=40%.
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