Understanding Dividend Income

Dividends are a portion of a company's profits that are distributed to its shareholders. Dividend yield is a financial ratio that shows how much a company pays in dividends each year relative to its stock price.

Why Use This Calculator?

This calculator helps you estimate your potential annual and quarterly income from a dividend-paying stock. It's a useful tool for income-focused investors to project their earnings and make informed decisions about their portfolio.

The Formula

The annual dividend is calculated based on the yield:

Annual Dividend Per Share = Share Price x (Dividend Yield / 100) Total Annual Dividend = Annual Dividend Per Share x Number of Shares