Welcome to the Dividend DRIP Calculator!
Using the MoneyByRamey.com Dividend DRIP Calculator
Welcome to the MoneyByRamey.com Dividend DRIP Calculator! This is one of the many tools that we have created for you to use in your Financial Freedom Journey.
This calculator is designed to help you discover the potential of some of the best dividend stocks out there and how they can pay dividends over time.
Important Fields in the Dividend DRIP Calculator
This is the amount that you will initially invest in your dividend-paying stock. You can enter any increment you'd like in this field. Keep it realistic or let your dreams run wild - have at it!
Input the ticker of the stock you are considering investing in. This could be $JNJ, $T, $MMM, etc. Nothing calculates off of this field, so you can leave it blank as well. It is good practice to enter the ticker though so you can remember which stock you are spreading.
Enter the share price for the stock you are wanting to invest in. This can be either the current share price or a hypothetical share price that you wish to purchase this stock at in the future.
Enter the current dividend payment amount of the stock you are looking to invest in. By default, this should be the quarterly dividend amount. However, if your stock pays out at a different iteration (i.e. monthly, bi-yearly, etc.), you can enter the dividend amount here and update the dividend frequency.
Here you will want to enter the frequency with which the dividend is paid to stockholders. Since most dividend-paying stocks pay out dividends at a quarterly frequency, this field is defaulted to 4. However, you can change this to match your situation.
The Dividend DRIP Calculator Assumptions
Remember that this dividend drip calculator is provided as a free tool to help you in your Financial Freedom journey. There are a few assumptions that this calculator makes which could change with time:
- This Dividend DRIP Calculator assumes that a stock will continue paying a constant dividend well into the future. This is typically not the case and is thus a limitation of the calculator. Since most companies change their dividend frequently - either through raises, cuts, or eliminations altogether, the future assumptions are best guesses based on a continually paid dividend.
- The calculator assumes no further investment into the stock, unless you fill out the 'additional investment' section with a specified additional amount.
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Disclosure: Long $AAPL, $ADM, $BG, $BGS, $BP, $BUD, $CALM, $CAT, $CLX, $CMI, $COF, $CSCO, $CTL, $DAL, $DFS, $F, $FAST, $GE, $GT, $HBI, $IBM, $INGR, $IRM, $JNJ, $JPM, $KHC, $KO, $KSS, $MMM, $NWL, $PEP, $PFE, $PG, $SBUX, $SJM, $SPTN, $STX, $SYY, $T, $TSN, $UL, $UPS, $WFC, $WPC, $WRK, $WY, $XOM
Disclaimer: All the information above is not a recommendation for or against any investment vehicle or money management strategy. It should not be construed as advice and each individual that invests needs to take up any decision with the utmost care and diligence. Please seek the advice of a competent business professional before making any financial decision.
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