Dividend Calculator – Investment Income & Yield Analysis
Calculate dividend income, yield, and payouts from stock investments
Table of Contents
How to Use
- Enter the number of shares you own
- Enter the current share price
- Enter the annual dividend per share
- Click calculate to see your dividend income and yield
What Are Dividends?
Dividends are payments made by corporations to their shareholders, usually as a distribution of profits. Companies pay dividends to reward shareholders and attract investors.
Understanding Dividend Yield
Dividend yield is calculated as the annual dividend per share divided by the share price, expressed as a percentage. A higher yield indicates better income generation relative to the investment cost.
Frequently Asked Questions
- What is a good dividend yield?
- A dividend yield between 2-6% is generally considered good, though it varies by industry. Very high yields (above 8%) may indicate risk or unsustainability, while very low yields may not provide sufficient income.
- Are dividends guaranteed?
- No, dividends are not guaranteed. Companies can reduce or eliminate dividends at any time based on financial performance, cash needs, or strategic decisions. Always research a company's dividend history and financial health.