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Excel DGI calculator
#6
Come to think of it, 3% DGR is probably too generous an assumption for ARCP. The Red Lobster lease escalator is 2% for 25 years, and that represents 12% of the portfolio, so I will model 2% DGR instead. This turns out to make a big difference over time.

As before, in year 5, Red Lobster goes out of business, interest rates spike, the dividend is cut by 30%, and the stock price also falls 30%. For 5 years following, the DGR and growth stagnate at 1%. Afterward the default growth rates continue.

After 10 years, $1000 on DRIP turns into $1,817 in principal paying $143/year in dividends.
After 20 years, $1000 on DRIP turns into $4,563 in principal paying $362/year in dividends.
After 30 years, $1000 on DRIP turns into $11,614 in principal paying $925/year in dividends.
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Messages In This Thread
Excel DGI calculator - by earthtodan - 06-22-2014, 11:32 PM
RE: Excel DGI calculator - by earthtodan - 06-27-2014, 11:37 PM
RE: Excel DGI calculator - by EricL - 06-28-2014, 01:10 PM
RE: Excel DGI calculator - by earthtodan - 06-28-2014, 02:02 PM
RE: Excel DGI calculator - by Jason - 06-29-2014, 09:07 AM
RE: Excel DGI calculator - by earthtodan - 07-04-2014, 10:15 PM
RE: Excel DGI calculator - by Roadmap2Retire - 11-12-2014, 01:55 PM
RE: Excel DGI calculator - by robgcon - 12-31-2014, 03:32 PM
RE: Excel DGI calculator - by hendi_alex - 12-31-2014, 06:33 PM



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