- in Data , Research by Cesar Alvarez
To dividend adjust or not to dividend adjust? That is the question.
About once a month, someone asks how important it is to have dividend adjusted data. Or someone will comment they do not want to use Norgate Data because they do not adjust for dividends (it does but it is not enabled by default). My answer has been “without dividend adjusted data, your results may be understated.” It has always bothered me that I could not give a better answer. In my post, “How much does not having survivorship free data change test results?” I covered other data issues but not this one. Since Norgate Data makes it easy to have two databases, one with the dividend adjustments and one without, it was time to run tests and determine how much of a difference it makes.