ALLMARKETS / THE TOOL DESK

Dividend Income & Yield Calculator

Estimate annual cash income and distinguish current yield from yield on original cost.

Your inputs

Use consistent units and periods. Defaults are examples.

Your result

Check the assumptions below before relying on a result.

Formula and method

Annual dividend per share = entered dividend × basis periods per year. Annual gross income = shares × annual dividend. Current yield = annual dividend ÷ current price × 100; yield on cost uses the original unit cost. Net income = gross × (1 − withholding fraction).

Worked example

100 shares paying 2 per share annually generate 200 gross each year. At a current price of 50, current yield is 4%. An original unit cost of 40 gives 5% yield on cost. With a 25% withholding assumption, annual cash is 150 and the monthly average is 12.50.

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How to use this result

  1. Choose shares or capital and enter a price in the same currency as the dividend.
  2. Check whether your dividend figure is an annual total or a single payment.
  3. Compare current yield and yield on cost without treating either as total return.
  4. Use the reinvestment model to account for changing shares and cash balances.

Questions about this calculation

Does a 4% dividend yield mean a 4% total return?

No. A change in share price, fees and tax can produce a different total outcome. A dividend may also be reduced or stopped.

Will I receive the monthly average every month?

Only if the actual payout schedule produces those payments. The average is an annual amount divided by twelve.

Is a higher yield automatically better?

The arithmetic does not assess the issuer, sustainability of distributions or investment risk.

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