With Dividend Calculator

Quick Example to see what With Dividend Does: Enter 100 as Purchase Price, Enter 200 as Sale Price (doubled your money). Enter 5 as Dividend. Spin the Year column on the Date Picker back 8 years (if it’s 2009, back to 2001; if it’s 2010, back to 2002). Leave Sale Date alone; it will default to the current date. Tap Compute Return. You should see a return of 13.6624%. Now go input some of your investments!

What it Does: With Dividend computes the annual return, compounded daily, on a stock that pays a dividend or an Investment that provides a constant yearly income stream. The return on the Capital Gain portion (buy price and sell price) of With Dividend is the same as the Inv. Return calculator. If you put in a 0 Dividend or leave it blank, With Dividend will provide exactly the same return as Inv. Return for the same investment. The return of the Dividend portion is simplified to be the percent of Dividend divided by Purchase Price. (It is not assumed that the Dividends are reinvested and earn the same return as the initial investment.) The Capital Gain return is added to the Dividend return to provide the total return for the With Dividend calculator. No Time Value or Compound Interest calculations are performed on the Dividend portion of With Dividend. It is common in the financial industry to compute Dividend Yield as the percent of Dividend divided by Purchase Price.

Inputs:

All the inputs for With Dividend are the same as for Inv. Return except for the Dividend numeric input.

Dividend: Input the annual (important that your input is Annual) Dividend or Interest Payment you received from holding this investment. I am going to start this description with an example. Suppose you bought 100 shares of IBM at $110 on Aug 16, 2007 and sold them for $120 on August 14, 2007. During the time you owned IBM you received on average $2 a year in dividends. You would put 110 for your Purchase Price, 120 for your Sale Price and 2 for your Dividend. When you tap Compute Return the Annual Return, Compounded Daily should be 6.1720% and the Dividend contribution should be %1.82. The Dividend you input must be proportional to the Purchase Price you input. If you input the price of a single share for the Purchase Price you should input the annual Dividend paid for a single share. If you input what you paid for 1000 shares of stock as your Purchase Price, the amount you input for Dividend should be the annual Dividend paid for 1000 shares of stock.

Dividends or Interest Payments should be paid out to you in cash, not reinvested in the security that you count as part of your Sale Price. If your dividend payout changed during the time you held the stock input the average Dividend you received. The most accurate way to calculate the average dividend is using a weighted average and that is discussed under Dividend Values.

Outputs:

The first number you see on your output message box after tapping Compute Return is the sum of your Capital Gain and the percentage return from your Dividend. So, in our example above, if you held IBM 2 years you would see a return of 6.7626%, 2% for your Dividend and 4.7626% for your capital gain. The Buy Price and Sell Price to confirm your input are then shown in the message box. The dividend portion of your return is shown as a separate item at the bottom of your message box. The Dividend you input is divided by your Purchase Price to get the Dividend income you received while you held the investment. Dividend assumes you received your dividend the entire time you held your investment (you didn’t sell your stock just before the ex-dividend date).

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