The Projected Cash Flows report includes 12 months cash flow estimation for the portfolio. It will calculate the income and maturity cash flow for all available security types.
We will use The following assumptions to estimate the projected income for Stock and Fund:
We only project cash dividends.
The future income will be based on its latest declared dividend payment, dividend rate would be same in the future 12 months.
We do not project cash flows if there is not enough data.
For example, let's assume Company XYZ has made the following dividend payments over the past year:
December - $1.00 per share
September - $0.50 per share
June - $0.50 per share
March - $0.50 per share
Company XYZ's most recent dividend payment was $1.00 per share. Assuming the firm's quarterly dividend payout remains at this new level, the firm will deliver total dividend payments of $4.00 per share in the coming year. The payment date will be decided by the last payment date and frequency.
For fixed income, we will use same calculation as currently used in the Projected Income report:
For the Total Interest Amount or coupon payment, the application takes the par value of the bond on the payment date and calculates the annual interest amount by multiplying it by the Interest Rate and times number of shares. Then this amount is converted to a value relative to the payment periods.
Interest amount = par value * number of shares * interest rate / number of payments per year