03-11-2014, 05:35 PM
You should do whatever makes you comfortable. But you are reporting something that you call Yield on Investment, and to do so you are dividing inflation devalued dividends by investment dollars that are no longer worth what they used to be. For me the result is a confusing mess. On the other hand if a person determines yield from dividends divided by the current value of capital, there is no such confusion. There is nothing misleading about such data.
Why discuss yield at all? All that really seems to matter to you is cash flow generated from dividends and perhaps how that cash flow has changed over time.
Why discuss yield at all? All that really seems to matter to you is cash flow generated from dividends and perhaps how that cash flow has changed over time.
Alex