Worked example
If you own 100 shares and the company pays an annual dividend of $2.40 per share, estimated annual dividend income is $240. If the shares trade at $60, the indicated yield is 4%. With quarterly payments, the simple income-per-payment estimate is $60.
Dividend calculator formula
Annual dividend income = shares owned × annual dividend per share. Indicated dividend yield equals annual dividend per share divided by share price. In investment-value mode, estimated annual income equals investment value multiplied by the assumed yield.
What the result does not tell you
The output assumes the entered dividend remains unchanged. A high yield can also be produced by a falling share price. Check payout sustainability, cash generation, debt and the issuer's latest declaration before relying on an income estimate.
Continue your research
Read Dividend Yield Explained, Dividend Payout Ratio Explained and How Dividends Work. For compounding scenarios, use the Dividend Reinvestment Calculator or browse the Dividend Research hub.
Frequently asked questions
How is annual dividend income calculated?
Multiply the number of shares by annual dividend per share. In investment-value mode, multiply investment value by the assumed dividend yield.
Does the calculator predict future dividends?
No. It only calculates a scenario from the values entered. Companies can increase, reduce, suspend or cancel dividends.
Does payment frequency change annual dividend income?
Not by itself. Payment frequency changes how the annual amount is distributed through the year.