How the dividend calculation works
The entered dividend yield and price return are assumed constant. Actual dividends and prices can differ.
Enter dividend yield separately from price return
Dividend yield is annual dividends as a share of invested asset value. Price return must exclude dividends. Using a total return that already includes dividends would count them twice.
Calculation order and reinvestment
Annual price return is converted to an effective monthly change. Each month, price change is applied first, then dividends accrue as invested asset value × annual yield ÷ 12. At a payment month-end, accrued dividends are reinvested or held as cash. Monthly contributions are added last and start earning dividends the following month.
Monthly price change = (1 + annual price return ÷ 100)^(1/12) − 1
Final total assets = invested assets + cash held
A simple example
With an investment of 100, a 6% annual yield, no price change or contributions and annual payments, one year generates 6 in dividends. Total assets at the first year-end are 106 either way. Reinvestment increases the dividend base for later payment periods.
How to read the results
All amounts are before tax; there are no tax inputs or deductions. Fees, exchange-rate changes and inflation are also excluded. Changing currency changes the unit, not the entered number.
The model holds dividend yield constant, so dividends per share change proportionally with price. Fixed per-share dividends, dividend growth rates, ex-dividend price adjustments, market holidays and fractional-share restrictions are not modeled. Payment intervals are counted from the calculation start and may differ from a security’s actual dates.