What you would have seen on the blog are the charts below from Finviz and BigCharts. Notice in the chart on the right that NUS does not appear to be at an all-time high. I think this is because BigCharts adjusts for splits, but not dividends.
The next charts show my own charts for NUS, based on unadjusted closing price data from Yahoo Finance. First, here is the unadjusted data (daily candlesticks on the left, monthly OHLC on the right). Notice that like BigCharts, these data indicate that NUS is not currently at a record high price.
Next take a look at my charts based on Yahoo Finance adjusted closing price data. The difference may not be obvious at first, but if you carefully compare the right chart below to the right chart above you can see that NUS is at an all-time high using the adjusted data.
Here is another comparison chart showing daily closing prices. The difference between adjusted and unadjusted prices is clear and it is evident that NUS is currently at an all-time high based on adjusted prices, but it is not at an all-time high price if we use unadjusted prices.
I wanted to know what adjustments would have been made so I visited the company's website. You can see from the screenshot below that there have been regular dividends but no splits. These dividends are the reason why the adjusted historical prices are lower than the unadjusted prices.
At the end of the day I is it better to use prices adjusted for dividends or not? I can see an argument for both sides. On one hand, it makes sense to take dividends into account because they return value to the shareholders, and the shareholders are more likely to be showing a profit if they have been paid dividends. On the other hand, however, many charting programs do not show adjusted data (adjusted for splits, yes, but not for dividends) and therefore many traders are not looking at adjusted prices. If a stock is "breaking out" using adjusted data, but at a double-top using unadjusted data, then which signal is more meaningful?
- Adjusted versus Unadjusted Stock Price: SXC Health Solutions
- Importance of adjusted stock price: Alberto Culver Co. (ACV) pays a $25 special dividend
- Profiting from trend-following and all-time high stocks: POT gains over 350%
- Trend-following is a successful strategy with all-time high stocks.