Compound Dividends and Your Return

How dividends are calculated can greatly affect your savings. The more often dividends are compounded or added to your account, the more you earn. This calculator demonstrates how compounding can affect your savings.

Definitions

Investment Amount
The amount of your initial investment.

Dividend Rate
The annual dividend rate for your investment. The actual rate of return is largely dependant on the type of investments you select. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Compound Dividends
Dividends on an investment's dividends, plus previous dividends. The more frequently this occurs, the sooner your accumulated dividends will generate additional dividends. You should check with your financial institution to find out how often dividends are being compounded on your particular investment.

Years
Number of years for this investment.

Yearly APY
Annual percentage yield received if your investment is compounded yearly.

Quarterly APY
Annual percentage yield received if your investment is compounded quarterly.

Monthly APY
Annual percentage yield received if your investment is compounded monthly.

Daily APY
Annual percentage yield received if your investment is compounded daily.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.