From now on we show you your dividend growth (CAGR) also adjusted for exchange rate fluctuations.
So far, we have shown you in the Dividend Growth Chart the development of your dividend income uniformly in the currency you have selected converted to the respective payday. Some of you have correctly noted that the development of dividend income depends not only on dividend increases, but also, in the case of foreign companies, on the exchange rate of the respective dividend currency.
Exchange rates are also subject to fluctuations, e.g. the euro lost over 20% against the dollar from the beginning of 2014 until today. Theoretically, it can happen that all own companies have increased the dividend within one year, but in currency-adjusted terms, nominally fewer euros arrive in the account than in the previous year (the same works in reverse, of course).
Therefore, we have added a new function to the dividend growth chart, so that you can adjust the chart for currency fluctuations in a backward comparison. In simple terms, this means two things:
Here you can see the function using the example of a portfolio with predominantly US dollar-denominated securities. Since the euro has depreciated against the U.S. dollar over time, the currency-adjusted dividend growth over the last 5 and 10 years is lower than the non-currency-adjusted growth in euros.
We hope the new feature gives you an exciting new insight into your dividend growth.
Further good dividend yields wish you
Max & Johannes