Investing
Dividend Calculator
Dividends turn a holding into a stream of income. Enter how many shares you own, the price you paid, and the annual dividend per share to see your yearly and monthly dividend income and your yield — the return dividends alone provide.
Formula shown below · Tested against worked examplesHow we verify
The total dividends paid per share over a year.
Annual dividend income: $400
Annual dividend income
$400
Total dividends this holding pays in a year.
- Average per month
- $33.33
- Dividend yield
- 4%
- Amount invested
- $10,000
Annual dividends spread across 12 months.
Annual dividend as a percent of price paid.
Compare scenariosTry three values of one input
| Number of shares | |||
|---|---|---|---|
| Annual dividend income | $360 | $400+$40 | $440+$80 |
| Average per month | $30.00 | $33.33+$3.33 | $36.67+$6.67 |
| Amount invested | $9,000 | $10,000+$1,000 | $11,000+$2,000 |
Every other input stays at the value you set above — currently 200 for number of shares. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
Annual income = shares × annual dividend per share. Monthly income divides that by 12 (an average — actual payments are usually quarterly). Amount invested = shares × price paid, and yield = annual income ÷ amount invested.
Yield here is 'yield on cost' — based on the price you paid. A stock's current yield uses today's price, which differs as the price moves. Dividends aren't guaranteed; companies can cut or suspend them, so treat projected income as an estimate.
Formula
Annual income = Shares × Dividend per share
Yield = Annual income ÷ (Shares × Price)- Dividend per share
- Annual, not quarterly
- Price
- Price per share paid or current
Yield falls as the price rises, which is why an unusually high yield frequently signals a falling price rather than a generous company. On the ex-dividend date the share price typically drops by roughly the dividend paid.
What this assumes
- The dividend continues at the rate entered. Dividends are discretionary and can be cut, which is when it usually matters most.
- Reinvestment at the same price, ignoring the fact that reinvesting buys more shares when prices are low.
- Qualified dividend tax treatment depends on holding period and is not applied.
What changes this number
- Whether dividends are reinvested
- The difference between income and compounding, and most of the long-run total return.
- Dividend growth
- A rising dividend compounds twice — more income on more shares.
- Yield chasing
- An unusually high yield frequently signals a falling price rather than a generous company.
A worked example
Take the 200 shares at $50, $2 dividend scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Number of shares
- 200
- Price per share
- $50
- Annual dividend per share
- $2
What it returns
- Annual dividend income
- $400
- Average per month
- $33.33
- Dividend yield
- 4%
- Amount invested
- $10,000
Sources
This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.
Calculator last reviewed August 9, 2026. How we verify
Try an example
Frequently asked questions
What is dividend yield?
Dividend yield is the annual dividend divided by the share price, expressed as a percent. A stock at $50 paying $2 a year yields 4%. It lets you compare income across holdings of different prices — but a very high yield can be a warning sign that the market expects a dividend cut.
How often are dividends paid?
Most U.S. companies pay quarterly (four times a year), though some pay monthly, semi-annually, or annually. This calculator uses the total annual dividend and shows the monthly average. To receive a dividend, you must own the shares before the ex-dividend date.
What is dividend reinvestment (DRIP)?
A DRIP automatically uses your dividends to buy more shares instead of paying cash. Those new shares then earn their own dividends, compounding your income over time — the same snowball effect as reinvested interest. Over decades, reinvested dividends account for a large share of total stock market returns.
Are dividends taxed?
Yes. 'Qualified' dividends are taxed at lower long-term capital-gains rates; 'ordinary' (non-qualified) dividends are taxed as regular income. Dividends inside a retirement account like an IRA or 401(k) are tax-deferred (or tax-free in a Roth). Your holding period and account type determine the treatment.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.