How the dividend calculator works

In shares-owned mode, annual income equals the number of shares multiplied by annual dividend per share. Indicated dividend yield equals annual dividend per share divided by the current share price. In investment-value mode, the calculator multiplies the investment amount by the assumed dividend yield.

What the result does not tell you

The output assumes the dividend input remains unchanged. A company can increase, reduce, suspend or cancel a dividend. A high yield can also be caused by a falling share price, which is why income estimates should be checked against payout sustainability and the company's financial position.

Next steps

Read Dividend Yield Explained, Dividend Payout Ratio Explained and How Dividends Work. To model reinvestment, use the Dividend Reinvestment Calculator.