Dividend Calculator

Understanding Your Dividend Returns

For dividend investors, this calculator is a must-have. It calculates two key metrics: the dividend yield, which measures the annual dividend as a percentage of the stock's price, and your total annual income from dividends based on the number of shares you own.

The Formulas Explained

• Dividend Yield (%): (Annual Dividend per Share / Stock Price) * 100
  • This tells you the return you get from dividends alone, relative to the stock's price.
• Annual Income: Annual Dividend per Share * Number of Shares
  • This is your total cash return from dividends over a year.

How to Use the Calculator

1. Stock Price: Enter the current price per share of the stock.
2. Annual Dividend per Share: Enter the total dividend paid per share over one year.
3. Number of Shares: Enter the number of shares you own.

Real-World Example

A stock trades at $50 per share. It pays a quarterly dividend of $0.25 per share. You own 200 shares.

• Annual Dividend per Share: $0.25 * 4 = $1.00
• Dividend Yield: ($1.00 / $50) * 100 = 2%
• Annual Income: $1.00 * 200 = $200

Frequently Asked Questions (FAQ)

• Where can I find the dividend information for a stock? This information is widely available on financial websites like Yahoo Finance, Google Finance, or your brokerage platform. Look for 'Forward Annual Dividend' or 'Dividend Yield'.
• Is a higher dividend yield always better? Not necessarily. A very high yield can sometimes be a warning sign that the company is in financial trouble and the dividend might be cut. It's important to look at the overall health of the company, not just the yield.
• Does this calculator include dividend reinvestment? No. This tool calculates the simple annual income. If you reinvest your dividends to buy more shares (a DRIP plan), your returns will compound and grow much faster over time. Our Compound Interest Calculator can help model that growth.