Dividend calculator
Calculate dividend income and yield, then project shares, reinvested dividends and account value.
Dividend formulas
Annual dividend per share = dividend per payment × payments per year. Current annual income equals shares owned multiplied by annual dividend per share. Forward dividend yield equals annual dividend per share divided by the current share price.
For each projected payment period, the calculator grows the dividend and share price using their equivalent periodic growth factors. Cash dividends equal shares before the payment multiplied by the projected dividend per share. When reinvestment is selected, the cash dividend buys fractional shares at the projected price.
Example
For 100 shares priced at $50 with a $0.50 quarterly dividend, the position is worth $5,000. The current annual dividend is $200 and the forward dividend yield is 4%.
Projection assumptions
- Dividend and price growth are smooth annual rates converted to each payment period.
- Contributions are divided equally and invested after each dividend payment.
- Reinvestment buys fractional shares without commissions or bid-ask spread.
- Cash dividends not reinvested remain as cash and earn no interest.
- Taxes, withholding, fees, dividend cuts, special dividends and currency changes are excluded.
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