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

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SUMMARY

This discussion focuses on using Excel to calculate potential dividend income from Microsoft stock, priced between $30-$31, with a dividend payout of $0.80 per share. The user has created a spreadsheet with columns for "Years," "Shares," "Share Cost - Dividends," and "Dividends," utilizing specific formulas to project earnings. However, there are concerns regarding the accuracy of the "Shares" formula, which unexpectedly reduced the share count significantly over time, leading to a substantial loss in projected income. Adjustments to the formulas are necessary to ensure accurate calculations of dividend income.

PREREQUISITES
  • Familiarity with Excel formulas and functions
  • Understanding of dividend calculations and stock investments
  • Basic knowledge of financial projections and modeling
  • Experience with spreadsheet data organization
NEXT STEPS
  • Review and correct the "Shares" formula for accurate dividend projections
  • Learn about Excel's financial functions, such as FV (Future Value) and PV (Present Value)
  • Explore advanced Excel techniques for data visualization of investment growth
  • Research dividend reinvestment strategies and their impact on long-term returns
USEFUL FOR

Investors, financial analysts, and Excel users interested in calculating and optimizing dividend income from stock investments.

moonman239
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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?
 
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moonman239 said:
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?

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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