Below is a S&P 500 Periodic Reinvestment Calculator. It allows you to run through investment scenarios as if you had been invested in the past. It includes estimates for dividends paid, dividend taxes, capital gains taxes, management fees, and inflation. Click the button labeled 'Click to Show Advance' to show the tool's advanced options. These fields are pre-populated by the tool and we have no way to save your inputs on the server. Please make sure you back them up – paste them somewhere – if you are running a complex scenario! The tool's designed for you to set up your own defaults as two columns in your favorite spreadsheet program, then just select both columns and paste directly into the tool's text box: The tool uses data published by Robert Shiller, which you can find here. Our S&P 500 methodology from our and Dow Jones Industrial Average Reinvestment Calculator is repeated; please read those articles if you are interested in the return calculations. On top of the above features, we've added periodic investments, dividend taxes, capital gains taxes, graphing, and exporting results in monthly resolution. Here is our order of operations for every month other than the first month. In the first month, we buy shares at the market price using the lump sum, receive no dividends, and pay no fees or taxes) When we hit the closing month: Now that you've seen our methodology, a disclaimer: Everything about this tool is informational and all outputs and calculations are for research purposes only. McGraw Hill Financial owns the S&P 500 Index and decides its constituent members, you should defer to them for all exact numbers, timings, and dates. Double check all numbers output from the tool with your own calculations using source data from elsewhere.We've made every effort to present accurate information, but this calculator is maintained by a single hobbyist. There are likely errors and omissions in the data.Even when the data is accurate, choosing different timings and orderings for the steps listed above can meaningfully change the final results of the calculations.Proceed at your own risk. You can check the last updated month by seeing what was set when you opened the page. It should automatically go to the latest data. Unfortunately, we have to update manually (for now) so expect about once a month updates.We have a number of calculators pointing to the same file, so when I update one they all pick up the new data automatically; we don't have to touch each one individually: If you come back and the default dates have changed, you'll know it has recently been updated. Robert Shiller is our source, and his methodology can be found on his site.This data is reasonably accurate and I trust it, but it isn't exact and official. McGraw Hill Financial owns the S&P 500 Index; if you want more specific data on dividend timing or daily data you should seek it out from them. See Robert Shiller's site (one question above). Dates before the index are spliced to indexes which reasonably measure similar stocks. If you really don't like it, you can limit your analysis to more recent years. No, but you can. It is very easy to fill the custom advanced option fields when you use a spreadsheet program to set it up. Here's what I use (OpenOffice) - it's free. I used it to test this calculator (on a Mac), so I can vouch for it.Just paste into the fields in the advanced options. No, but you can. Try OpenOffice - it's free or Excel to lay out the dates for easy cut/paste into the tool. See the above answer, and note that when you do custom investment amounts the tool will only fill in investment amounts of the months you enter, so you can do as many or as few as you want! There are so many index funds with so many different management fees that it's impossible to have a good number. These are a reasonable start, but even today there is a huge disparity in what different funds cost to manage an index fund. Just change them if you don't like them, or start from a later date when they better match your expectations. No idea - I assume that would be the tracking error and management fee cost of large funds mimicking indexes or something. I made them up. I'm sure a large investor could pay a manager to track an index as well (or buy every stock in an index), but I agree it's not perfect - most of what we know about indexing is only a generation and a half old. All internal data is rounded off to 4 decimal places. (If you can't match a calculation exactly, that's the most likely culprit). The results are approximate anyway so this isn't a huge limitation. Still, please keep it in mind while citing and using the calculator. No. I'm available for hire if you need something custom, with this data or most any other data I have access to.The tool is in a state which makes me happy. Feel free to leave suggestions, but this is probably the final number of features that will ever be in this calculator.To project into the future, try the investment calculator instead. Here's some other work I've done... maybe I've already created what you need? Yes, absolutely... and please bring it up immediately so I can fix the tool! However, if you're trying to sneak in an enhancement request, the answer is 'no' (or 'hire me'). Consider it a reverse birthday gift - the site turned 6 years old, so you got a gift! Also, I wanted to run a lot of these scenarios myself, and you've already seen the beginnings of this calculator take shape in an article or two.Why not? The code probably took 10 or 15 hours (I don't have an exact number - it's about 1300 lines of code all in). All the miscellaneous stuff like writing this article and finding source data and defaults probably added another 5-8. With that in mind, please share this piece with all of your friends! Pure JavaScript.I used some new HTML features too for the csv export, and I use Google's library for the chart. I started it on a 2012 Macbook Pro 15", and I'm finishing up with a Mid-2014 Macbook Pro 15" Retina. So, we've addressed many of the limitations in the with this post. Now you can run wild with all of your backtesting questions on the S&P 500. I hope that this covers everything you wanted with the original tool, and additionally silences the few rumblings I still see about passive investing. Now you can run the scenario you'd like here for periodic vs. lump sum investing and see a reasonably accurate backtest. The CSV file export is another key feature. By exporting the data monthly, you can import it into your spreadsheet program and run even more complex scenarios. Also, as we showed in the original calculator, dividends matter.Over longer scenarios, you'll note that the dividends paid start to dominate the initial investment.If you ever see an article posted which ignores the effects of dividends or only quotes price returns on an index, please send the author this way!The S&P 500 Periodic Investment Calculator
Basic Options for the S&P 500 Periodic Reinvestment Calculator
Advanced Options for the S&P 500 Periodic Reinvestment Calculator
Tool Default Overrides
Methodology for the S&P 500 Periodic Reinvestment Calculator
Monthly Investment Methodology
Final Month Investment Methodology
Data Questions
How often do you update the data?
Why is the data in monthly format?Can you add daily data?
How does this dataset start from before the S&P 500 Index Began?
I don't like your management fee estimates/tax estimates. Can you change them?
My preferred investment style is (annually/quarterly/biannually/only on leap years/once per child I have), can you add it to the tool?
Are the default management fees accurate?
How do you have management fees before 1971 when the first index funds were forming?
How precise is this tool?
General Questions
Can you add <some feature I think is important> to the tool? Can you add other asset classes or indexes?
Can you fix the bug with <something I think is broken>?
Miscellaneous
Why did you make this?
How long did this take to create?
What was this calculator written in (and on)?
Conclusion for the S&P 500 Periodic Reinvestment Calculator
FAQs
How do you calculate stock growth with dividend reinvestment? ›
The total value with dividend reinvestment equals the final stock price multiplied by the sum of the initial number of shares plus all dividend reinvestment shares. The number of shares is the initial number of shares plus all the shares purchased with reinvested dividends.
How much would $8000 invested in the S&P 500 in 1980 be worth today? ›To help put this inflation into perspective, if we had invested $8,000 in the S&P 500 index in 1980, our investment would be nominally worth approximately $876,699.23 in 2022.
Does the S&P 500 index include reinvested dividends? ›The price index is proportional to the weighted market caps of the underlying companies in the S&P500 index. You normally see the price index. When you google “S&P500 Index”, it will return the price chart which does not include reinvested dividends. And the value of an index ETF security follows the price index.
What percent of the S&P 500 returns are from dividends? ›Since 1926, dividends have contributed approximately 32% of total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are important factors for total return expectations.
How do you calculate dividend reinvestment in Excel? ›Enter the estimated annual dividend growth rate and annual stock growth rate in cells A5 and A6. This information can be acquired through your stock broker or online investment account. Enter "=FV(B6/B3,B4_B3,B1_B2/4)*-1" without quotes in cell A7 to calculate the future value of all reinvested dividends.
How do you calculate dividend growth rate? ›Dividend Growth Rate = (D2/D1) – 1
So here in this case let us take for example dividend issued in first year as D1 and similarly dividend issues in the next year as D2. To compute the rate we need to divide the dividend issues in second year with the dividend issued in first year and subtract the resultant by 1.
With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.
What is the average return of the S&P 500 over the last 50 years? ›The S&P 500 index acts as a benchmark of the performance of the U.S. stock market overall, dating back to the 1920s (in its current form, to the 1950s). The index has returned a historic annualized average return of around 10.5% since its 1957 inception through 2021.
How much would you have if you invested 10000 S&P 500? ›If you invested $10,000 into an S&P 500 index fund today and it had a 10% average annual rate of return over the next 40 years, you'd end up with nearly $452,600. And that's without ever investing another dime after the initial $10,000.
Does S&P 500 pay dividends monthly? ›S&P Global has paid a dividend each year since 1937. The current annualized rate is $3.08 per share and was declared on January 27, 2022. On February 28, 2022, the Board of Directors of S&P Global approved a 10.4% increase in the regular quarterly cash dividend on the Company's common stock over the prior quarter.
Does Voo reinvest dividends automatically? ›
I know the dividends are reinvested automatically in the fund. So if the yield is 2.0% annually, it's not like the investor is getting 2.0% more shares annually like a stock DRIP plan, but instead the fund or shares would be worth 2% per year more, all else equal.
Do index funds reinvest dividends? ›Investors in index mutual funds can elect to take any dividends paid in cash or have dividends reinvested into more shares of the fund. The reinvestment option helps compound the growth potential of the fund.
How much do I need to live off dividends? ›You can expect an investment portfolio to pay out dividends roughly between 1% to 6% of its value each year. At those dividend yields, you'd need a portfolio value between $100,000 and $600,000 to make $500 per month in dividends.
Do Dividend Aristocrats outperform S&P 500? ›The S&P 500 Dividend Aristocrats index has returned an annual average of 18.3% over the past 10 years, compared with 17.1% (including dividends) for the S&P 500 as a whole.
Does S&P annual return include dividends? ›The S&P 500 is a market-cap weighted index of large U.S. stocks. The value of the S&P 500 index is not a total return index, meaning it doesn't include the gains earned from cash dividends paid by companies to their shareholders.
How do you calculate drip dividends? ›What is a DRIP? Investing with Compounding Dividends - YouTube
How do you calculate compounded dividends? ›How do you calculate dividend payments that are reinvested? Because reinvested dividends take the form of additional shares of stock, the formula is easy to calculate. The total value is equal to the stock price multiplied by the total number of shares, including any shares purchased through dividend reinvestment.
What is dividend formula? ›The formula to find the dividend in Maths is: Dividend = Divisor x Quotient + Remainder. Usually, when we divide a number by another number, it results in an answer, such that; x/y = z. Here, x is the dividend, y is the divisor and z is the quotient.
How do you calculate 5 year dividend growth rate? ›- Formula (using Arithmetic Mean) = (G1 + G2 + …….. + Gn) / n.
- Formula using Compounded Growth) = (Dn / D0)1/n – 1.
- Dividend Growth Rate Formula = (Dn / D0)1/n – 1.
- Let us take the example of Apple Inc.'s dividend history during the last five financial years starting from 2014.
Dividend yields from blue-chip U.S. companies have been trending downwards over time, evidenced by the Standard & Poor's 500 Index (S&P 500) dividend yield of approximately 1.3% through the end of 2021. 1 This is well under the index's long-run average yield of 4.3%.
Whats a good dividend growth rate? ›
The answer? A good combination of the two. At least a 2.5% dividend yield. More than 7% dividend growth rate over the last few years.
Can you live on the interest of 1 million dollars? ›The historical S&P average annualized returns have been 9.2%. So investing $1,000,000 in the stock market will get you $96,352 in interest in a year. This is enough to live on for most people.
Why does Dave Ramsey use 12 percent? ›When Dave Ramsey says you can make a 12% return on your investments, he's using a real number that's based on the historical average annual return of the S&P 500.
How much of my portfolio should be in the S&P 500? ›But the 5% rule can be broken if the investor is not aware of the fund's holdings. For example, a mutual fund investor can easily pass the 5% rule by investing in one of the best S&P 500 Index funds, because the total number of holdings is at least 500 stocks, each representing 1% or less of the fund's portfolio.
What should my portfolio look like at 55? ›The point is that you should remain diversified in both stocks and bonds, but in an age-appropriate manner. A conservative portfolio, for example, might consist of 70% to 75% bonds, 15% to 20% stocks, and 5% to 15% in cash or cash equivalents, such as a money-market fund.
What is a good rate of return on investments in 2021? ›Expectations for return from the stock market
Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market.
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Basic Info.
| Report | S&P 500 Returns |
|---|---|
| Category | Market Indices and Statistics |
In general, the S&P 500 is a good investment for long-term growth. Still, it's important to remember that there are risks involved. This is especially true when you are investing for a shorter period rather than decades.
What is the average stock market return over 30 years? ›| Period | Annualized Return (Nominal) | $1 Becomes... (Adjusted for Inflation) |
|---|---|---|
| 10 years (2012-2021) | 14.8% | $3.06 |
| 30 years (1992-2021) | 9.9% | $5.65 |
| 50 years (1972-2021) | 9.4% | $6.88 |
- First, decide what your goal is. ...
- Stash it in a high-yield savings account. ...
- Start or add to your emergency fund. ...
- Try out self-directed brokerage accounts. ...
- If you're a beginner, stick with mutual funds and exchange-traded funds (ETFs) ...
- Use a robo-advisors for hands-off investing. ...
- Stick it in U.S. Treasuries.
Do Tesla pay dividends? ›
Plus, Tesla does not pay a dividend to shareholders, which is also an important factor for income investors to consider. As a result, we believe income investors looking for lower volatility should consider high-quality dividend growth stocks, such as the Dividend Aristocrats.
How many stocks in the S&P 500 pay a dividend? ›Nearly 75% of the stocks in the S&P 500 pay a dividend, and the dividend for many of them exceeds the yield on U.S. 10-year Treasury bonds (currently around 2.8%). However, screening for the highest-paying dividend stocks in the S&P 500 reveals some even more impressive yields.
What stock pays the highest dividend? ›- Philip Morris International Inc. (PM)
- Vornado Realty Trust (VNO)
- Simon Property Group Inc. (SPG)
- International Business Machines Corp. (IBM)
- Oneok Inc. (OKE)
- Kinder Morgan Inc. (KMI)
- AT&T Inc. (T)
- Altria Group Inc. (MO)
VOO Dividend Information
VOO has a dividend yield of 1.47% and paid $5.55 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 24, 2022.
Under The Hood: iShares S&P 500 Index Fund (IVV A)
Perhaps most importantly, the open-end structure allows for the immediate reinvestment of dividends, potentially resulting in enhanced returns during bull markets.
It's automatic. You're buying at various prices, averaging out the price per share over the long term. You're compounding your investment's growth by continually adding more shares which, in turn, will generate dividends of their own.
Does Warren Buffett reinvest dividends? ›While Berkshire Hathaway itself does not pay a dividend because it prefers to reinvest all of its earnings for growth, Warren Buffett has certainly not been shy about owning shares of dividend-paying stocks. Over half of Berkshire's holdings pay a dividend, and several of them have yields near 4% or higher.
Can you reinvest dividends without paying taxes? ›Dividends are taxable regardless of whether you take them in cash or reinvest them in the mutual fund that pays them out. You incur the tax liability in the year in which the dividends are reinvested.
What happens to dividends in index fund? ›pretty much every index fund pays dividends as long as they are equity index funds…the index fund just holds the shares that the index does…so if the companies in the index pays dividends, the fund also gets those dividends.
Can you live off dividends of 1 million dollars? ›The average person would need to build a portfolio of at least $1 million to fully cover living expenses with dividend income. A portfolio of $2 million would produce an amount that provides a comfortable lifestyle for most people.
How can I make 100K a year from dividends? ›
- Get started.
- Develop a long-term mindset.
- Determine your target dividend yield.
- Factor in taxes.
- Compute your required investment.
- Identify dividend stocks for investment.
- Develop a watch list.
- Analyze the stocks on your watch list.
Look for $12,000 Per Year in Dividends
To make $1,000 per month in dividends, it's better to think in annual terms. Companies list their average yield on an annual basis, not based on monthly averages.
Today MO, ENB, VFC, MMM, and IBM are 5 of the safest 5% yielding aristocrats you can buy in these troubled times. They are 19% undervalued, offer 5.1% very safe yield, 8.0% long-term growth potential, and 13.1% long-term return potential, similar to the 13.8% they've delivered over the last 31 years.
Is T still a Dividend Aristocrat? ›1, communications firm AT&T (T) is kicked out of the exclusive and lucrative S&P Dividend Aristocrat index. It's a collection of the S&P 500 companies that have boosted their dividends for 25 straight years.
Is there a dividend king ETF? ›There aren't any exchange-traded funds (ETFs) that focus exclusively on Dividend Kings. However, the ProShares S&P 500 Dividend Aristocrats ETF (NYSEMKT:NOBL) owns shares of all Dividend Aristocrats.
Does the S&P 500 index include reinvested dividends? ›The price index is proportional to the weighted market caps of the underlying companies in the S&P500 index. You normally see the price index. When you google “S&P500 Index”, it will return the price chart which does not include reinvested dividends. And the value of an index ETF security follows the price index.
How do you calculate stock growth with dividend reinvestment? ›The total value with dividend reinvestment equals the final stock price multiplied by the sum of the initial number of shares plus all dividend reinvestment shares. The number of shares is the initial number of shares plus all the shares purchased with reinvested dividends.
How much would $8000 invested in the S&P 500 in 1980 be worth today? ›To help put this inflation into perspective, if we had invested $8,000 in the S&P 500 index in 1980, our investment would be nominally worth approximately $876,699.23 in 2022.