And a rise in price of a stock implies that dividends will increase. So what good is a yield figure, obtained by dividing last year's dividends by the present price? Here is a different way of judging the yield on stock. Assuming that when a man buys stock he expects to keep it for quite a while, he is interested in what the dividends are likely to be during several future years. The past record interests him only as it shows a trend that may continue into the future. At the end of 1957, each of the older mutual funds published a statement of the results obtained each year from a purchase of shares in that fund fifteen years earlier, at the end of 1942.


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