A friend of mine pointed out this unique feature in TD Ameritrade. Based on your portfolio, it can predict the amount of income you receive each month, especially since the majority of my portfolio is in dividend paying stocks.
The Dividend Income Estimator can be found under the “Planning and Retirement” link at the top of your home page once you log in.
Based on my current portfolio, TD projects that I’ll be receiving $5,452.40 this year in dividend payments. This averages out to $454.37 per month. This is very helpful as it also shows you which months produce the most income and which months have less. I plan to use this in conjunction with my calendar to help me track metrics. For those in budget planning, this will also help you determine how to budget for upcoming expenses.
The downside is that it’s using historical data to project a constant rate of income stream. With our dividend strategy, and investing in dividend growth companies, we’re looking at some sort of dividend growth over time. A prime example is Realty Income. whose dividends have increased year-over-year. And recently in the past few months too.