Long Term Stats

Figure 20 shows an index of the accumulated real return on UK ordinary shares at the end of each quarter from 1919 to 2008. The share indices used are those described under dividend yields in Figure 6. The accumulated money return allows for net dividend income and for changes in the capital value of shares. The real return is obtained by dividing the UK ordinary share returns by the price index shown in Figure 2.

Figure 21 is based on dividends received by pension funds (including reclaimed Advanced Corporation Tax up to June 1997) and gives the percentage returns on ordinary share investment over periods of one, five, 10 and 20 years, ending in December each year from 1986 to 2008. On the left are shown percentage rates of nominal return, and on the right are shown percentage rates of real return, relative to retail prices.