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Using Excel to figure out how much money I could make if I traded my dividends?

  1. Feb 11, 2012 #1
    I want to use Excel to figure out how much money, in dividends, I could make if I bought a stock in Microsoft, whose stock has recently stayed at $30-$31. They pay $0.80 in dividends/share.

    So far, I have a spreadsheet with columns "Years," "Shares," "Share Cost - Dividends," and "Dividends."

    The "Shares" column has the formula shares=1+ROUNDDOWN(((0.8*A4)*B3)/30.5,0.1), the first part of the equation (.8*A4)*B3 representing the dividends paid out to me the previous year.

    The "Share Cost - Dividends" column has the formula = (30.5)*# of Shares - Amount in Dividends Paid Out The Last Year.

    The "Dividends" column has the formula = (.8*Shares)*Years.

    Does this look good or do I need to change anything in the spreadsheet?
  2. jcsd
  3. Feb 11, 2012 #2


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    Gold Member

    Why would "Shares" require a formula?
    When I plugged your formula into my spreadsheet, my shares dropped from 1000 to 1 by the 4th year. I lost over $30,000! :cry:
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