Dividend Calculator

Simple Dividend Income Calculator

The dividend calculator is a finance-related tool that will help you calculate the money you get from high-paying stocks when you invest in them.

Alternatively, a dividend is the money that a company pays to its shareholders.

Our article will help you understand what a dividend is, how to calculate it, and also tell you the top 10 dividend-paying companies where you should invest. You can use our dividend calculator to quickly project your earnings.

How is cash dividend calculated?

To calculate total “gains” considering dividends, there is a popular dividend yield formula:

Dividend Yield= annual dividend / stock price x 10

Is there an easier way to calculate dividend income offsetting a declining share price?

Yes. Instead of calculating the absolute dividend share price, you can calculate the dividend price per share with the help of this formula:

Dividend Income = Annual dividend per share / current share price x 100

There is another method through which you can calculate income, which is based on the number of shares you hold multiplied by the dividend per share:

Total dividend income = dividend per share x Number of share owned

Calculator for dividends per year?

A dividend is essentially money an investor gets for investing in a stock, but remember, you don’t get a dividend on all stocks. You must find the best stock that will benefit you in return. To calculate the dividend per year, here is a formula:

Total dividend per year= number of share (you hold) x dividend you get 

How are corporate dividends calculated?

Corporate or private companies mostly have different strategies for paying dividends. Some companies pay quarterly, while some pay after one year or six months, and some prefer to pay monthly. Your dividend value also changes according to the number of shares you hold in a specific stock.

For example, if you hold 8 shares of a specific stock, and the dividend paid by this stock per share (yearly) is $10, then this means you will get $80 as a dividend in the end. To calculate the dividend payout ratio, you can use:

dividend payed by company / the share outstand that year 

DRIP Calculator for Dividend Reinvestment

Dividend reinvestment is a common way to invest in dividends. It means using the dividends you receive to buy more shares. It gives you more shares, which means you’ll get more dividends in the future. This is like compound interest, where the more money you have, the more you make. The dividend reinvestment calculator helps you see how this works.

Do the retirement calculators take dividends reinvesting into account?

Yes. These calculators are called Dividend Reinvestment Plan (DRIP) calculators. They take into account your reinvested dividends to purchase further shares in the future. Check out our reinvestement dividend calculator.

Formula for Dividend Reinvestment

To find out how much an investment will be worth in the future with dividend reinvestment, use this formula:

[ V_f = P × (1 + r/m)^(mt) ]

Where:

• V_f is the investment’s worth in the future.
• P is the amount of money you put in at first.
• R is the dividend yield, expressed as a decimal.
• m is the number of times the dividend compounds each year.
• t is the length of time you want to invest.