Sentences with phrase «nominal dividend income»
Nominal dividend income continued to grow, just not as fast as inflation.
http://www.early-retirement-planning-insights.com/ Not exact matches
«If net income continued growing at this more modest pace, in lockstep with nominal GDP, corporations would not be able to continue growing dividends at current rates while keeping payout ratios constant.»
The formula for the real income of an investment at year N is: Inflation adjusted dividend income = (initial dividend amount) * -LCB-[1 + (nominal dividend growth rate)-RSB- ^ N -RCB- / -LCB-[1 + (inflation rate)-RSB- ^ N -RCB- Typically, you would use a nominal dividend growth rate of 5.5 % per year in the absence of other information and 3 % per year inflation.
If so, the formula becomes: Inflation adjusted dividend income = (initial dividend amount) * (1.055 ^ N) / (1.03 ^ N) With preferred stock and / or bond income, use a nominal dividend growth rate of 0 %.
The Morningstar Income & Dividend Investing discussion board recently included a listing of 60 years of FKINX total (nominal) return data.
Your income stream will come within about 1 % of the initial dividend yield plus the annualized, nominal growth rate of the dividend minus the inflation rate.
They decompose the total returns into the three subclasses of return sources: changing valuation, dividend income, and nominal dividend growth.
But while dividend income has accounted for nearly 50 percent of the long - term nominal annual return on stocks and 75 percent of the real annual return, even these figures dramatically understate the cumulative role played by dividends.
Conceptually, if a corporation can support a long term return of 10 % (nominal), it carries less risk to a retiree if the return is strictly from dividends alone than an alternative that requires capital appreciation as well as dividend income to deliver the same return.