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: Over the life of the Fly High portfolio, the consolidated dividend yield is over 12%, so consider using 12% as the annual dividend rate.

Compounding Frequency per Year: Most stocks pay quarterly dividends, so consider using 4 as the yearly frequency.

 

Compound Dividend Calculator

Compound Dividend Calculator

Compounding dividends can significantly boost your dividend income stream over time. Here's how it works:

  1. Initial Investment: Begin by acquiring the dividend-paying stocks within the Fly High portfolio.
  2. 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.
  3. Reinvestment: By reinvesting your dividends, you increase the number of shares you own.
  4. Increased Dividends: With more shares, the next time dividends are paid out, you receive a larger total dividend payment because you own more shares.
  5. Cycle Repeats: Each reinvested dividend buys more shares, leading to higher future dividend payments. This creates a snowball effect.

Over time, this process accelerates the growth of your dividend income. The key to maximizing this strategy is patience and consistency—letting the compounding effect work its magic over the years.