The diagram below, the “so-called” Performance triangle shows the performance per holding period in an easy picture. Read here more how to interpreter this diagram.

The performance (return) triangle shows the average annual returns for any investment periods, i.e. combinations of buy and sell on an annual basis. The “year of buy” is plotted on the horizontal axis and the “year of sell” on the vertical axis. The average annualized return can be seen at the intersection of these two coordinates.

For example, those who acquired the dividend aristocrats at the end of 2000 and sold them at the end of 2002 achieved an average annual return of -0.08%. With an exit in 2003, however, a per-annum return (cagr) of 7.78% is calculated.

The average data in the bottom indicate which average annual yield was achieved at the start of the respective year. Starting with a position in the aristocrats at the end of 2000, Dividend Aristocrats (buy&hold) investors made e.g. average annual price returns of 8.07%.