COMPOUND DIVIDEND CALCULATOR
How to use the Calculator
Initial Investment: The initial amount of money you dedicate to the Fly High portfolio.
Annual Addition: The total yearly contribution you make in addition to your initial investment.
Number of Years: The number of years before you retire and begin withdrawing from the account.
Annual Dividend Rate: Keep in mind that the portfolio, launched in September 2017, has a current dividend yield exceeding 12%, factoring in reinvested dividends. Therefore, using 12% as the yield in the calculator is a reasonable approach.
Compounding Frequency per Year: The majority of our companies pay quarterly dividends. However, many of our companies pay monthly dividends, so consider using 12 as the compounding frequency per year.
Compound Dividend Calculator
Compounding dividends can exponentially boost your dividend income stream over time. Here's how it works:
- Initial Investment: Begin by acquiring the dividend-paying stocks in the Fly High Investing portfolio.
- Dividend Payments: Many companies in the Fly High portfolio distribute dividends quarterly. However, some companies provide monthly dividends, ensuring you start receiving dividends shortly after you build your portfolio.
- Reinvestment: By reinvesting your dividends, you increase the number of shares you own.
- Increased Dividends: With more shares, the next time dividends are paid out, you receive a larger total dividend payment because you own more shares.
- Cycle Repeats: Each reinvested dividend buys more shares, leading to higher future dividend payments. This creates a snowball effect.
