If some shareholders are angry about their miserable portfolio status and wonder why the Dax reached a record high on Friday, but their own portfolio is far away from it, the solution to the riddle could lie in the dividends. Because the index assumes that the dividends are immediately reinvested in the purchase of shares. And which investor does that? But the effect is enormous, as our chart shows. The classic Dax (including dividends) has just risen to a record high of more than 16,300 points. But if you only relied on the share prices and used the dividends for vacation, good food or car repairs, you only get a miserable 6400 index points.
Daniel Mohr
Editor in Business.
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Both indices started at 1000 points in 1988. And in March 2000 the Dax reached a good 8000 points and its price index 6266 points. Since then, the Dax has more than doubled with dividends, while the price index has only risen by 3 percent. It’s not Adidas’ fault that things are going so tediously: since then, the price has increased by 1138 percent. Merck only came into the Dax later, but can look back on a 984 percent price increase. VW at least up 409 percent, BMW 310 percent, Mercedes only 33 percent.