Dividend Calculator
Calculate dividend income, yield, and total return on your dividend stocks. Track quarterly, monthly, and annual dividend payments. Plan your passive income portfolio.
Annual Dividend Income
$800
$67/monthly • $200/quarterly
13.33%
Dividend Yield
16.00%
Yield on Cost
-64.0%
Total Return
Understanding Dividends
Dividends are cash payments from companies to shareholders, typically from profits. Established companies with steady cash flow often pay dividends regularly. This calculator helps track your dividend income and understand yield metrics.
Frequently Asked Questions
What is dividend yield?▾
Dividend yield is annual dividend divided by share price, expressed as a percentage. A $100 stock paying $3/year in dividends has a 3% yield. Higher yield means more income per dollar invested, but may indicate risk.
What is yield on cost?▾
Yield on cost is dividend yield based on your original purchase price, not current price. If you bought at $50 (3% yield) and it now trades at $100, yield on cost is still 3% even though current yield is 1.5%. Important for long-term investors.
How are dividends taxed?▾
Qualified dividends are taxed at lower long-term capital gains rates (0%, 15%, 20%) depending on income. Non-qualified dividends are taxed as ordinary income. Hold stocks >60 days for qualified treatment. Tax rules vary by jurisdiction.
What is dividend frequency?▾
Dividends are paid monthly, quarterly, or annually. Most US stocks pay quarterly. Some REITs and monthly dividend payers pay monthly. This calculator supports all frequencies for accurate annual income projection.
Should I reinvest dividends?▾
Reinvesting dividends (DRIP) accelerates compound growth. Instead of taking cash, buy more shares, which generate more dividends. Over decades, this significantly increases total return. Consider reinvesting for long-term goals.
What is a good dividend yield?▾
S&P 500 average is ~2%. Yields 2-4% are common. Above 5% may indicate risk (dividend cut potential). Below 1% suggests growth-focused companies. "Good" depends on your goals: income vs growth.
How do I calculate dividend income?▾
Multiply annual dividend per share by number of shares. If a stock pays $1/year quarterly and you own 100 shares, annual income is $100 ($25/quarter). This calculator automates the math for any frequency.