Dividend Calculator
Calculate your dividend income, find the yield, or determine how many shares you need to reach your passive income goals.
Dividend Calculator
Calculate dividend income, required shares for target income, or dividend yield.
Dividend Yield = (Annual Dividend per Share / Share Price) × 100. A higher yield means more income per dollar invested.
Payment Frequency varies by company. Most US stocks pay quarterly, while some REITs and foreign stocks pay monthly or annually.
Note: Dividends are not guaranteed and can be reduced or eliminated. Past dividend payments don't guarantee future payments.
Understanding Dividends
Dividends are payments made by companies to shareholders from their profits. They provide a source of passive income and can be a key component of long-term investment returns.
Dividend Yield
Yield = (Annual Dividend / Share Price) × 100
Dividend yield shows the annual dividend as a percentage of the stock price. It helps compare income potential across different investments.
Dividend Payout Ratio
Payout = (Dividends / Earnings) × 100
Shows what percentage of earnings a company pays as dividends. Lower ratios may indicate more sustainable dividends.
Dividend Yield Ranges
| Yield Range | Classification | Considerations |
|---|---|---|
| 0-1% | Low/Growth Focus | Company reinvesting in growth |
| 1-3% | Moderate | Balance of growth and income |
| 3-5% | Good Income | Strong income, often mature companies |
| 5-7% | High Yield | Good income but verify sustainability |
| >7% | Very High | Potential dividend trap - investigate carefully |
Types of Dividend-Paying Investments
Dividend Aristocrats
S&P 500 companies with 25+ years of consecutive dividend increases.
REITs
Real Estate Investment Trusts must distribute 90% of income as dividends.
Utility Stocks
Stable companies with consistent cash flows and regular dividends.
Dividend ETFs
Funds that hold baskets of dividend-paying stocks for diversification.
Preferred Stock
Fixed dividends with priority over common stock dividends.
MLPs
Master Limited Partnerships often have high distributions.
Dividend Investing Tips
- 1.Don't chase yield: Very high yields may indicate a company in trouble.
- 2.Check dividend history: Look for consistent or growing dividends over time.
- 3.Review payout ratio: A ratio over 100% means dividends exceed earnings.
- 4.Consider DRIP: Dividend Reinvestment Plans compound your returns.
- 5.Diversify: Don't rely on a single stock for dividend income.
- 6.Understand taxes: Qualified dividends are taxed at lower rates than ordinary income.