DIVCASHFLOW GUIDE
Understand your dividend income estimates
An estimate is a planning aid. It is useful when you can see its assumptions, and it should never be confused with a guaranteed return or a payment already received.
Annual income and shorter-period averages
An annual estimate describes a run rate based on the available or entered distribution assumptions. A monthly average divides that annual figure across twelve months; a weekly average spreads it across fifty-two weeks. These averages do not change how often a security actually pays.
For example, an illustrative annual estimate of $1,200 corresponds to $100 per month on average. It does not mean that exactly $100 will arrive each month. The actual schedule and amounts can be different.
Distributions can change
A recent distribution should not be treated as a promise of future distributions. Amounts, frequency and eligibility may change. Historical events may also predate share splits. Review the underlying record and its date instead of assuming that every past per-share amount is comparable.
Use the growth planner as a scenario
DivCashflow lets you explore assumptions for contributions, reinvestment, price change and distribution growth. Changing one assumption can change the result substantially. A smooth projection is a mathematical scenario, not a forecast of real market movements.
Understand what is left out
The growth planner does not model market volatility, inflation, brokerage fees, changing exchange rates or separate return-of-capital accounting. An assumed deduction rate is a simplification, not a personalized tax calculation. Price-growth assumptions are separate from the distributions added by the model.
Compare income with the wider picture
Cash distributions alone do not describe investment performance. Also consider contributions, price changes, fees and deductions. A portfolio can distribute cash while losing value. The SEC’s fund-distributions guide explains why distributions alone are not a measure of performance.
Keep the three records separate
- Estimates describe a possible income run rate or scenario
- Declared events describe available issuer payment information
- Broker records establish what your account actually received
Use your dividend calendar alongside the estimates, and verify important figures with the issuer or broker.
Examples are illustrative. This guide is general information, not personalized investment or tax advice.