The MoneyByRamey.com Forward Dividend Income Calculator
Forward Dividend Calculator
*Note that this calculator may not work on mobile. Currently working on developing an app.
The Dividend Income Calculator
Welcome to the Forward Dividend Income Calculator, as presented by MoneyByRamey.com.
We developed this tool to help our users better define particular companies ripe for investment.
Using the Calculator
The Forward Dividend Income Calculator is a tool that you can use to calculate your expected dividend income from a certain investment amount in a particular publicly-traded security.
The dividend income calculator is meant to be an initial tool that provides a high-level overview of a particular company’s dividend and its effect on a dividend investor’s annual income.
Keep in mind that this is only a tool for the investor to utilize; it is not meant to be taken as a stand-alone investment guide. As always in investing, investors need to complete due diligence and seek the advice of a competent financial advisor before making any financial decision.
Dividend Income Calculator Definitions
The investment amount is the initial amount that the investor is looking to deploy into the company. This could be any amount the investor feels comfortable with; $100, $1,000, $10,000, etc.
I personally feel comfortable investing in $2,000, $5,000, or $10,000 increments.
This is the field where you input the stock sticker (i.e. T, MMM, AAPL). Nothing calculates off of this field, so you could leave it blank if you’d like. It would be best practice to fill this out to ensure you remember which stock you are reviewing.
Enter in the stock’s current share price or the target price of where you’d like to purchase at. This could be the share price as of today, or this could be a share price of where you are considering deploying your capital.
I typically use the current share price, as I use this as a tool as to whether or not I consider taking a particular company through my entire investment process.
Enter in the current dividend or target dividend for the stock you are considering investing in.
Toggle the frequency of the yearly dividends. By default, this is set at 4, as most publicly-traded companies with a dividend policy pay on a quarterly basis.
Annual Dividend Payout
This is the annualized dividend payout amount. It is calculated by taking the quarterly dividend and multiplying it by the dividend frequency.
This is how much dividend income you can expect to receive if you invested the ‘investment amount’ at the current dividend payout.
This is the number of shares you would receive should you deploy your capital into purchasing shares at the input ‘share price’ at the input ‘investment amount’.
This is how much dividend income you can expect to receive per quarter. This is calculated by dividing the payout ratio by the ‘dividend frequency’ amount.
This is the current dividend yield. This is calculated by taking the current ‘annual dividend payout’ and dividing it by the ‘investment amount’. As a rule of thumb, the higher the yield demonstrates a higher risk profile by the market.
This represents how many additional shares you can purchase per year via DRIP program. This means that when you receive dividends, rather than take these distributions as cash, you reinvest into your stock positions.
*A quick caveat: this amount assumes a stable share price. Since this scenario will never be the case in open markets, this is to be taken as a general idea of how many more shares one can expect to receive when having a position on DRIP. Obviously, this means if share price goes up, you will receive less share accumulation; if share price goes down, you will receive more share accumulation.
Try out our Dividend Calculator with DRIP!
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Disclosure: Long $AAPL, $ADM, $BG, $BGS, $BP, $BUD, $CALM, $CAT, $CLX, $CMI, $CSCO, $CTL, $DAL, $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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