DividendTools

Dividend Income Calculator

Calculate annual and per-payment dividend income from a holding, with current yield, yield on cost and an after-tax figure.

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Free · No sign-up · Runs in your browser

Dividend income is straightforward arithmetic - shares multiplied by the dividend per share, multiplied by the payment frequency - and it produces two yield figures that are routinely confused with each other.

Current yield uses today’s price and is the figure to use when comparing one investment against another. Yield on cost uses the price you paid, rises as a company raises its dividend, and describes the history of one particular position rather than its present attractiveness. Both appear here, clearly separated.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Annual income

$2,924

After-tax income
$2,485
Income per payment
$731
Monthly average
$244
Current yield
2.92%
Yield on cost
5.38%
Annual dividend per share
3.44
Position value
$100,300
Payments per year
4

This tool is for informational and educational purposes only. It is not financial or investment advice, and past performance does not guarantee future results.

Yield on cost uses the price you paid, so it rises as a company raises its dividend. Current yield uses today’s price and is the one to use when comparing investments.

Dividends are declared by the company and can be cut or suspended at any time. Withholding and tax treatment depend on your jurisdiction and account type.

How to use the dividend income calculator

  1. Enter the number of shares and the dividend paid per share per payment.
  2. Set the payment frequency - four for quarterly, twelve for monthly, one for annual.
  3. Enter the current share price for current yield and the price you paid for yield on cost.
  4. Add a withholding or tax rate for the after-tax figure.

What people use this for

  • Working out the income a holding produces per year and per payment.
  • Comparing current yield across holdings on a like-for-like basis.
  • Tracking yield on cost as a record of what a long-held position now pays.
  • Estimating income net of withholding tax.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A quarterly payer held for some years

850 shares, $0.86 per quarter, current price $118, bought at $64, taxed at 15%.

Annual income
$2,924
Current yield
2.92%
Yield on cost
5.38%

A monthly distribution

3,200 units, $0.058 monthly, price $9.40.

Annual income
$2,227
After-tax income
$1,893
Monthly average
$186

Current yield and yield on cost measure different things

Current yield is the annual dividend divided by today’s price. It is the only one of the two that helps when deciding between investments, because it is the yield available to someone buying now.

Yield on cost divides by what you paid. It rises whenever the dividend is raised and is not affected by the price at all, which makes it a pleasant record of a long-held position and useless as a comparison between holdings.

A high yield is a question, not a feature

Yield is a ratio, and it rises when the numerator increases or when the denominator falls. Unusually high yields are very frequently the second case: a price that has dropped because the market doubts the dividend.

A yield well above comparable holdings is worth investigating rather than buying. The coverage calculator on this site is the natural next step.

Tax treatment varies more than the arithmetic

Dividend tax depends on jurisdiction, on account type, on residency, and on treaty arrangements where the payer is foreign. Withholding at source can also be reclaimable in part.

The after-tax figure here applies a single rate you enter. It is an estimate for planning, not a tax calculation, and it assumes nothing about your circumstances.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • Results are arithmetic on the numbers you enter. Nothing here predicts prices or connects to an exchange, broker or market data feed.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This tool is for informational and educational purposes only and does not constitute financial or investment advice. Past performance does not guarantee future results.

Nothing on this website is a recommendation to buy, sell or hold any security, currency, derivative or digital asset. No price is predicted and no return is promised or implied.

Trading and investing carry the risk of substantial loss, including the loss of your entire capital. Leveraged products can produce losses that exceed your deposit. Tax treatment depends on your jurisdiction and your circumstances.

Frequently asked questions

Which yield should I use to compare investments?

Current yield. Yield on cost describes your own entry price and cannot be compared between holdings or against anyone else’s position.

Are dividends guaranteed?

No. They are declared by the company and can be reduced or suspended at any time, and frequently are during difficult periods.

Does this account for dividend growth?

No, it is a snapshot at the current dividend. The dividend growth calculator projects increases forward over time.

Is this investment advice?

No. It calculates income from figures you supply, for informational and educational purposes only. It recommends no holding.

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