Dividend Calculator
Stop guessing your passive income. Quickly calculate expected dividend payouts based on share count, price, and current yield.
Payout Projection
This projection assumes dividend yields remain constant. In reality, companies sometimes increase, cut, or suspend dividend payments entirely based on earnings.
Making Your Portfolio Pay You
Dividend investing is one of the oldest and most reliable strategies for building long-term, passive wealth in the stock market.
Yield vs. Growth
A high yield isn't always good. Sometimes a yield is high simply because the underlying stock price crashed. Look for stable businesses with a history of steady dividend growth over time.
The Power of DRIP
A Dividend Reinvestment Plan (DRIP) allows you to automatically use your cash payouts to buy more fractional shares of the company, drastically accelerating compound returns.
Payout Ratio
Smart investors always check the payout ratio. If a company is paying out 90% of its earnings as dividends, the payout may be unsustainable if revenues drop.
How Dividends Are Calculated
The Math
Calculating your dividend payout is a straightforward application of percentage to your total investment basis:
Total Value = Share Price × Number of Shares
Annual Dividend = Total Value × (Yield % / 100)
Total Value = $5,000
Annual Dividend = $5,000 × 0.04 = $200 per year
Frequently Asked Questions
What is a dividend yield?
Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. For example, if a stock trades at $100 and pays an annual dividend of $5 per share, its dividend yield is 5%.
Are dividend payments guaranteed?
No. Unlike interest on a bond or CD, stock dividends are never guaranteed. A company's board of directors must declare a dividend payment. If the company faces financial difficulties, they can cut or entirely suspend the dividend without warning.
What does "Dividend Aristocrat" mean?
A Dividend Aristocrat is an S&P 500 company that has not only paid dividends consistently but has also increased the size of its payout every consecutive year for at least 25 years. These are generally considered highly stable, blue-chip investments.
How often are dividends usually paid?
In the United States, the vast majority of dividend-paying companies distribute their payouts quarterly (four times a year). However, some real estate investment trusts (REITs) and specific ETFs pay monthly, while many European companies pay annually or semi-annually.
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