Author Topic: Dividend Income Calculator?  (Read 6667 times)

AJDZee

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Dividend Income Calculator?
« on: January 20, 2014, 07:26:24 PM »
There are tons of investment calculators on the net to track/predict/calculate investments... pop in $ saved/year, put in a conservative annual growth rate... maybe throw in an inflation rate for good measure... and boom! spits out a simple 'projected portfolio' after 'x' years.

But does anyone know of a similar tool, not looking at gains in capital, but rather dividend income or dividend growth?
Maybe put an average yield, an average dividend growth rate and $ saved/year and calculate dividend income after a period of time.

I ask because I built one today in excel and wanted to see if my math was correct... it seems too good to be true  haha

Cheers.

wtjbatman

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Re: Dividend Income Calculator?
« Reply #1 on: January 20, 2014, 07:30:23 PM »
Dividend Ladder has a nice calculator. You can do it by portfolio or individual stock, and it has plenty of variables to adjust. It looks good to me anyway.

AJDZee

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Re: Dividend Income Calculator?
« Reply #2 on: January 20, 2014, 08:10:50 PM »
That calculator is exactly what I was looking for!

When I plug in my variables I used in my calculator from today, this calculator gives about half of what I calculated for dividend income, when I use the 'portfolio' selection.

But when I put those same factors into the 'individual stock' calculator (put 0% growth for annual share price) I get roughly what I have... so I wonder what's different between portfolio and individual stock...

beltim

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Re: Dividend Income Calculator?
« Reply #3 on: January 20, 2014, 08:20:55 PM »
Over long time frames, a 0% stock price increase combined with dividend increases produces unrealistic dividend yields. For more information see http://m.seekingalpha.com/article/895581

wtjbatman

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Re: Dividend Income Calculator?
« Reply #4 on: January 20, 2014, 08:24:06 PM »
Well obviously dividend growth stocks don't just grow their dividend, by definition their value is going to increase. The dividend just comes along for the ride. That's what makes them such attractive stocks.

fiveoh

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Re: Dividend Income Calculator?
« Reply #5 on: January 20, 2014, 08:30:06 PM »
The calculator works for me, it matches my spreadsheet exactly.  Make sure you put in your starting principal as principal and not starting dividends.  I made that mistake the first time and it came out off. 

Khan

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Re: Dividend Income Calculator?
« Reply #6 on: January 20, 2014, 08:43:15 PM »
Over long time frames, a 0% stock price increase combined with dividend increases produces unrealistic dividend yields. For more information see http://m.seekingalpha.com/article/895581

I hate it when I see that faulty logic that this article is aimed at being used in SA articles. That link is bookmarked, and I will spam the hell out of it on articles which fail the logic test.