# YTD Stock Performance

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YTD stands for "year to date," which refers to how a stock has done since the start of the calendar year. Like any most other measures of performance, the higher the YTD return, the better the stock is doing. However, the YTD return can be misleading if you don’t take into account the time at which you’re measuring it.

## YTD Formula

To figure the YTD performance, subtract the price of the stock at the start of the year from the current price of the stock. Then, divide the result by the price of the stock at the start of the year. Finally, multiply by 100 to convert the result to a percentage. For example, say the stock started the year at \$90 and now it’s grown to \$98. First, subtract \$90 from \$98 to get a raw increase of \$8. Then, divide \$8 by \$90 to get 0.0889. Finally, multiply by 100 to get an 8.89 percent YTD gain.

## Dividend Effects

If your stock paid dividends, you also have to account for those by adding them to stock’s current price when figuring the YTD. When a company pays a dividend, the stock price typically goes down by the amount of the dividend per share, but as an investor, you haven’t lost anything because you have that money in your pocket. For example, say that the stock price is up to \$98 from \$90, but it’s also paid a \$2 dividend. Instead of an \$8 per share gain, the gain is actually \$10 per share, which is about an 11.11 percent gain, rather than just the 8.89 percent return.