<prompt> Human: Hello,I am looking at my Roth IRA this lazy Saturday, and am trying to determine my change in investment value for 2012, and looking at it, it seems dividends are added to the price paid for investments, rather than representing gains. I know that these dividends are being reinvested in stock, but reddit, can you explain why dividends are added to your price paid when they really represent earnings?  <response>: technically, since you are re-investing them, when you get a dividend, you are buying more shares. So it is part of the price you paid. 