Dividend Calculator

How the Dividend Calculator Works

The dividend calculator is a tool that allows you to simulate the number of shares of stocks or real estate investment funds needed to achieve a desired passive income. Just enter the last dividend paid by the asset, and the tool will perform a real-time simulation, displaying the number of shares and the yield.

Additionally, it is possible to customize the shares in the 'Customize shares' field, allowing investors to tailor the simulation according to their needs and financial goals. This flexibility enables simulating different investment scenarios, offering a macro and realistic view of the dividends.

What are Dividends?

Dividends are a portion of the profits distributed to a company's shareholders for their investment. These payments are made periodically, usually quarterly or annually, and represent a portion of the profits earned by the company during a certain period.

This practice is common in companies that adopt a policy of rewarding their shareholders and serves as an incentive to attract new investors interested in earning passive income through their investments.

Dividends can be paid in cash or in the form of additional shares of the company, called stock dividends, and are an important indicator of a company's financial health, reflecting its ability to generate profit and reward investors.

Which Assets Distribute Dividends?

Dividends are commonly found in stocks of companies from various sectors such as technology, healthcare, finance, energy, among others. They are also present in Real Estate Investment Funds (REITs), which invest in real estate projects and distribute part of the profits to the shareholders, as well as in Real Estate Investment Trusts (REITs), a popular investment vehicle in the United States. Additionally, ETFs (Exchange-Traded Funds) that follow market or sector indices also distribute part of the dividends received from the stocks that make up the fund.

These are just a few examples of assets, and the distribution of dividends can vary depending on market conditions and the policies of each company or real estate fund.

What is Dividend Yield (DY)?

The Dividend Yield is a financial indicator that shows the return an investor receives in relation to the dividends distributed by a company compared to the current share price. In turn, the Yield on Cost (YOC) expresses the return generated by an investment in stocks in relation to the original purchase price of the shares, calculated by dividing the annual dividends received by the original purchase price and multiplying the result by 100.

In other words, the Dividend Yield is calculated by dividing the total value of dividends paid per share by the current share price and multiplying the result by 100 to express it as a percentage. This indicator is often used by investors to analyze how profitable it is to own shares of a particular company in terms of dividends, providing a forecast of dividend profitability in relation to the current share price.

A high Dividend Yield may indicate that a company is distributing a large portion of its profits to shareholders, while a low Dividend Yield may suggest the opposite, that the company is reinvesting its profits for future growth.

What is Yield on Cost?

Yield on Cost (YOC), also known as Yield on Purchase, is an indicator that expresses the return generated by an investment in stocks in relation to the original purchase price. To calculate the YOC, divide the annual dividends received per share by the original purchase price per share and multiply the result by 100.

For example, if an investor purchased shares of a company for $100 per share and received $5 in dividends per share the following year, the YOC would be 5%, calculated as follows: (5 / 100) x 100 = 5%. The YOC is valuable for investors looking for companies that consistently distribute dividends and grow over time.

Conclusion

The Dividend Calculator is a useful tool for those who want to plan how much money they can earn with investments in stocks or real estate funds. It shows how many shares or units are needed to achieve a desired passive income based on the dividends paid. You can adjust the simulations according to your needs.

Dividends are part of the profits that companies distribute to shareholders. This happens from time to time and is a way to reward those who have invested in them. These payments are important to understand how a company is performing financially and if it is a good investment option. They also exist in other types of investments, such as real estate funds and ETFs. Understanding Dividend Yield and Yield on Cost helps to decide where to invest your money wisely.