How to calculate your shares’ earnings?
Share price performance, the payment of dividends and free share attributions as well as the loyalty bonus all contribute to the return on your investment in shares. A measure of this is the “Total Shareholder Return” (TSR). Expressed as an average percentage per year, TSR can be compared with the interest rate that would have remunerated your capital if you had placed it in an interest-bearing bank account or a life insurance contract instead of in a securities account.
With the former types of account, interest from each period gradually increases the capital, and bears interest in turn: this is the principle of compound interest. By analogy, TSR is calculated by assuming that dividends received are reinvested in shares, which in turn pay dividends and entitle the holder to free share attributions and the loyalty bonus in the following years. TSR thus allows you to directly compare the return on your equity investment with the yield on your other investments, such as more classic savings products.
A steadily expanding portfolio
Your Air Liquide share portfolio expands even more when you decide to reinvest your dividends in shares: they therefore contribute to increasing your portfolio’s performance.
The TSR presented below was calculated based on a registered shareholder eligible for the loyalty bonus, who benefited from free share attributions and who reinvested dividends received in shares every year.
30th
The October 9, 2019 free share attribution, on the basis of one free share for every 10 shares held, was the 30th in Group history.
Did you know?
There is an exponential effect with compound interest(a). The longer you hold your shares, the faster the value of your portfolio increases.
(a) Interest for each period is included in the capital to gradually increase it and in turn bear interest.
Note : past performances of Air Liquide’s share are not a guarantee of future results. This document should not be considered as investment advice. Please read the risk factors detailed in the Universal Registration Document, available at airliquide.com.
Portfolio growth over the past 5, 10 and 20 years (TSR)
- 2014 : €100
- 2019 : €176.09 (Capital invested x 1.8)
- +11.98%
per year - 2009 : €100
- 2019 : €328.60 (Capital invested x3.3)
- +12.63%
per year - 1999 : €100
- 2019 : €763.97 (Capital invested x7.6)
- +10.70%
per year
Value of portfolio at December 31, 2019 and average annual growth, before taxes.
Note: dividends are recognized as having been reinvested in shares. The Preferential Subscription Rights relating to the capital increase undertaken in September 2016 are recognized as having been sold, then reinvested in shares.