A Controlled Greed.com reader working in New York emails:
John -- Because USA Mobility (USMO) pays out large dividend sums to its shareholders, the stock will drop in response as capital is being returned to the investor base. You must calculate dividends on this stock to get a fair assessment of return.
This is an important reminder that simpler may be easier, but not always more accurate.
I don't include dividends and payouts when calculating YTD and Life of the Blog results for stock picks. Because it keeps things simple and easy as well as being a time saver.
But only four of the 13 stocks listed in my Current Holdings menu don't pay any sort of dividend -- Comcast, Deckers Outdoor, DirecTV Group and Liberty Media. The rest do. So dividends ARE important.
Plus, with USA Mobility's management being committed to returning cash to shareholders, dividends and payouts are a bigger factor in judging the success or failure of this stock pick.
And I thank the reader for emailing to remind me of that fact.
USMO 1-yr chart: