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Dividend Calculator

Turn a holding and a dividend per share into payout income, annual income and a yield you can compare.

Inputs
Dividend incomeCalculated
Annual dividend income1,760.00
Formula
Income per paymentshares x dividend per share
Annual incomeincome per payment x payments per year
Dividend yieldannual dividend per share / share price
Inputs
  Shares held                      500
  Dividend per share per payment   0.88
  Payment frequency                4 (quarterly)
  Share price                      145.00
Working
Per payment500 x 0.88 = 440.00
Annual440.00 x 4 = 1,760.00
Yield3.52 / 145.00 = 2.428%
Results
  Income per payment          440.00
  Annual income               1,760.00
  Average per month           146.67
  Annual dividend per share   3.52
  Dividend yield              2.428%
  Value of the holding        72,500.00
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About the Dividend Calculator

Dividend arithmetic is easy to get slightly wrong because companies quote the payment per share per payment while yields are annual. Five hundred shares receiving 0.88 each quarter produce 440 per payment and 1,760 a year, which against a 145 share price is a yield of 2.428 percent. Enter the per payment figure and pick the schedule, and the annualising is handled for you.

The monthly average line is there for anyone building an income ladder, since quarterly payers rarely align neatly and a portfolio is easier to plan on a monthly basis. The target income field answers the question most income investors actually have: at this dividend, 3,410 shares are needed to produce 12,000 a year, and at the current price that holding would cost 494,450. Seeing both numbers together tends to settle expectations quickly.

The figures assume the dividend holds. Payouts are set by boards and can be cut, and a very high yield is often the market pricing in exactly that risk rather than a bargain. Withholding tax and broker fees are not deducted here either. To check whether the dividend is comfortably covered by profit, run the Earnings Per Share Calculator and compare, and to value the share from its dividend stream use the DDM Calculator.

How to use

  1. Enter how many shares you hold or plan to buy.
  2. Enter the dividend per share for a single payment, not the annual total.
  3. Choose how often it is paid so the yearly figure is built correctly.
  4. Add the share price for a yield, and a target income to see the holding it needs.

Common questions

How is dividend yield calculated?
Annual dividend per share divided by the current share price, expressed as a percentage. Four quarterly payments of 0.88 on a 145 share give 2.428 percent.
Should I enter the quarterly or the annual dividend?
Enter the amount of a single payment and set the frequency. The tool multiplies to get the annual figure, which avoids double counting.
Does this include dividend reinvestment?
No. It shows the cash income from the holding as it stands. Reinvesting compounds the position, which the compound interest tool models better.
Is a high yield always good?
Not always. Yield rises when a price falls, so an unusually high figure often signals that the market expects the dividend to be cut.