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How is estimated income calculated?
How is estimated income calculated?
Updated over a week ago

Estimated income is income you expect to receive over the next 12 months in your Public portfolio based on your current account holdings as of today. This is strictly an approximation of the dividends and interest anticipated, and the actual income you receive may differ.

Estimated income may include stock and ETF dividends, interest from bonds, and interest from your high-yield cash account. Estimated income calculations vary based on the asset class. See below for a detailed description of the estimated income calculation by asset:

Dividends from equities: Calculated using the next estimated dividend amount per share (or the most recent received dividend if the next estimated dividend is not available). Assumes the current quantity owned and the dividend’s per share amount remain constant, and extrapolates that amount over the current and future 11 months using the dividend frequency. Some important assumptions for you to be aware of:

  • Estimated dividends do not consider the ex-dividend date or the date you opened your position. This means that if you open a new position after the ex-dividend date, the dividend may be included in estimated income, despite you not actually being eligible to receive the income since you purchased the stock after the ex-dividend date

  • Estimated dividends may also be inflated or deflated due to recent corporate actions (e.g., stock splits and reverse stock splits) where the new estimated dividend is unavailable

Interest from bonds: Calculated using the schedule set by the bond’s issuer (including rate, frequency, next payment date, and maturity). Some important assumptions for you to be aware of:

  • Assumes interest is paid on schedule, the issuer is not in default, and the bond has not been called

  • If the bond was purchased at a premium or discount, this will impact your yield to maturity but is excluded from income hub calculations

Interest from Treasury Account: Calculated using the schedule set by the issuer for the underlying bonds owned within your Jiko brokerage account. Some important assumptions for you to be aware of:

  • Only includes interest through your treasury bill’s current maturity

  • Does not assume automatic rollovers or include fees

Interest from your High-yield Cash Account: APY is converted to a daily interest rate, which is then used to calculate interest payments based on the daily balance. Assumes monthly payments on the 16th, or next business day, and a monthly compounding of interest earning balance. Some important assumptions for you to be aware of:

  • Assumes future interest based on maintaining your current high-yield cash account balance, and that there is no change in APY

Interest from Bond Account: Calculated using the schedule set by the bond’s issuer (including rate, frequency, next payment date, and maturity) for the underlying bonds owned within your Bond Account. Some important assumptions for you to be aware of:

  • Assumes interest is paid on schedule, the issuer is not in default, and the bond is not called

  • Excludes fees

  • If the bond was purchased at a premium or discount, this will impact your yield to maturity but is excluded from income hub calculations

Estimated income will not include interest from royalty payments, securities lending, or brokerage cash.

When you close a position, you will no longer receive estimated income for that asset. When you open a position, you will start receiving estimated income within minutes of the position showing up in your portfolio.

Learn more about each asset’s Income methodology at public.com/disclosures/income-hub. For any questions or suggestions, please contact Member Support via in-app chat or email at support@public.com.

Informational purposes only; not investment advice. The Income Hub displays your received and estimated income from dividends and interest. Estimates are presented as-is, may include information from third parties, and are not guaranteed for accuracy by Public Investing. Past performance does not guarantee future results, and your actual income generated may differ. Amounts shown do not include the effects of taxes. Your account statement is your official record of your holdings. Read Full Disclosures.

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