Dividend Reinvestment Calculator
This online calculator will helps you to know how your portfolio value grows when dividends are reinvested versus not reinvesting them.
Stock dividend, or dividend for short, is a payment made by a company to its shareholders. Dividends payments are usually made from the corporations profit, i.e., the company chooses to share parts of its profits with its investors. Dividends are one of the ways an investor can earn a return on stocks.
Dividend Yield Formula :
Dividend Yield =
Dividend Reinvestment Formula :
FV = P * (1 + r / m)m×t
FV - the future value of the investment
P - the money invested or initial balance
r - the dividend yield
m - the number of times the dividend is compounded per year
t - the numbers of years the money is invested for.
How Dividend Reinvestment Calculator Works :
Initial Number of Shares : Enter the amount of stock you have purchased.
Initial Price per Share : Enter the investment.
Annual Dividend : How much income does the company pay you each year.
Dividend Annual Growth Rate : How much do you expect the dividend to grow each year.
Stock Price Annual Growth Rate : How much do you expect the share price to increase each year.
Number of Years : How long is your investment time frame.