The Dividend Snowball Projection Tool allows you to calculate the compounding effect of investing in a stock and reinvesting dividends over 35 years. There is a full video, explaining how to use the tool and the logic behind it.
Navigate to the "Projection" Page
On the left-hand navigation bar, click "Projection". The page will load with the inputs for the projection tool.
Data Inputs (Stock/Investment)
Input related data for both the stock example and related to your investing plan.
a) Stock
Enter the current stock price, annual dividend, expected dividend CAGR, and expected CAGR of stock price
b) Investment
Enter the Investment Amount, Frequency of that investment (one-time, monthly, etc), Frequency of the dividend payment (annual, semi-annual, quarterly, monthly, etc), and the option of whether or not you reinvest dividends.
Projection Output
After entering the data, click "calculate". This will load multiple tables showing the projection output.
a) Snapshot Table
View a summary of the projection over 5, 10, 15, 20, 25, 30, and 35 years. This includes the annual dividends earned, dividend yield on cost, total invested capital, total earned dividend to date, and total value.
b) Total Value Projection
A graph showing the total value over time. Includes with dividend reinvestment, without DRIP, and the cost for reference.
c) Total Annual Dividend Income
A graph showing the total annual dividend income over time. Includes with dividend reinvestment and without DRIP.
d) Total Earned Dividends
A graph showing the total earned dividends overtime. Includes with dividend reinvestment and without DRIP.
e) Full Data Projection Table
View the full projection month by month over 35 years. View the investment amount, stock price, purchased shares, earned dividend payment, earned DRIP shares, total shares, and change in annual dividend per share.
Full Video Breakdown