The author of The Stalwart pointed out the analysis failed to account for dividends paid over the last 20+ years. Considering these companies were heavy dividend payers it diluted the analysis significantly. Regardless, they also included a nice little chart that illustrated the taxonomy of mergers and divestitures. I include it again, though it already needs a little updating and I’m sure it will need more in the future.
When I blogged this, I thought the chart needed a little more finesse.
The Bellsouth (BLS) and AT&T merger generated a flurry of press activity and with it, some excellent data for stat junkies like myself. Lucky for us, the WSJ published an article on Bellsouth that included the same financial analysis done by Birinyi but included the dividend yield. Birinyi reported that the S&P500 outpaced the AT&T Baby bells by almost 2x during the previous 23 years. Including dividend yields almost brings it back to parity. Chalk one up for the value of dividends.