JPM launches dividend tool

Whether the dividends are from funds or from individual stocks, the dividend reinvestment calculator, which will be available on the fund managers’ advisory-facing site, will help investors understand the economic impact of reinvestment.

Michael Parsons, head of UK intermediary sales for JP Morgan, said: “Reinvested dividends have been the single biggest driver of equity returns in the UK, the US and Europe over the long-term.

“Investors tend to forget or overlook that income-oriented strategies can also be a source of capital growth.”

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The tool aims to show the difference between total return and price return over any given time period and region, demonstrating the additional growth generated by automatically putting dividends to work in the markets.