COMPOUND DIVIDEND CALCULATOR
How to use the Calculator
Initial Investment: Initial Investment: The hypothetical starting amount you want to use in this income-compounding illustration.
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: Annual Dividend Rate: Enter the annual dividend rate you want to model. The current indicated yield of the Fly High 50 Model Portfolio may provide a useful reference point, but it is not a guaranteed future return. Dividends, market values and model holdings can change.
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.
This calculator provides a hypothetical illustration only. Actual results will vary based on dividend changes, security prices, reinvestment timing, taxes and the investments selected.
Compound Dividend Calculator
Compounding dividends can exponentially boost your dividend income stream over time. Here's how it works:
- Initial Investment: Begin by acquiring high-yield dividend-paying stocks, consider 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.
