Thanks for the info! It is a simple calculation, but it reminds us that we need to include dividends where appropriate when figuring the return of a stock. Most people balance their investments and anyone planning for retirement would be well advised to 1 evaluate their risk profile and 2 invest in a portfolio of investments that matches that profile. If you ever want to retire or fund college for your children, then you will need to invest your money in something. To calculate the compound annual growth rate, divide the value of an investment at the end of the period by its value at the beginning of that period.