Annual and monthly dividend income from shares, dividend per share and price, with yield on cost and an optional growth and reinvestment projection.
Example Result
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Estimates for planning only; not financial, tax or investment advice. See our Disclaimer.
A dividend yield tells you what a stock pays per dollar; a dividend income calculator tells you what your holding pays in dollars. Enter the number of shares, the current price and the annual dividend per share — for a quarterly payer, four times the quarterly amount — and the calculator returns the annual income, the monthly average, the value of the position and its current yield. Add the average price you paid and it also shows your yield on cost, which for long-held stocks can be far above the yield a new buyer gets today. Add an annual dividend growth rate and a number of years and it projects the dividend per share and your income in that year, both with the dividends taken as cash and with them reinvested at today's price. Run each holding separately and add the results for a portfolio total.
Enter the number of shares you hold.
Enter the current share price and the annual dividend paid per share.
Optionally enter your average cost basis to see yield on cost.
Optionally enter a dividend growth rate and a number of years to project future income with and without reinvestment.
Press Calculate to see your income projection.
By O.E. — Partner, chairman of the board and CEO of a metal products manufacturer for 21 years; the company exports to 45 countries.
Drafted with AI assistance; calculations checked against primary sources and tested with the site's own code. About FlowUtil
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Annual dividend income = shares × annual dividend per share (200 × 3.40 = $680.00); monthly income is that ÷ 12 ($56.67, an average — most companies pay quarterly); portfolio value = shares × current price ($17,100); current yield = annual dividend ÷ current price (3.40 ÷ 85.50 = 3.98%); yield on cost = annual dividend ÷ cost basis per share (3.40 ÷ 72.00 = 4.72%).
The income depends only on shares and dividend per share. The price affects the yield and the position value, not the dollars you receive — which is why a falling share price raises the yield without changing your income (and why a very high yield deserves a second look; see the Dividend Yield Calculator).
With a growth rate and a number of years, the dividend per share in that year is dividend × (1 + growth)ⁿ, and the income is shown both with the dividends taken as cash (current shares × future dividend) and with them reinvested each year at today's price, so the share count compounds too.
| Symbol | Meaning |
|---|---|
| Annual income | Shares × Annual dividend per share |
| Monthly income | Annual income ÷ 12 (an average) |
| Current yield | Annual dividend ÷ Current price × 100 |
| Yield on cost | Annual dividend ÷ Cost basis per share × 100 |
| Dividend in year n | Dividend × (1 + growth)ⁿ |
1A long-held dividend stock: 200 shares bought at an average $72.00, now $85.50, paying $3.40 a year.
200 × 3.40 = 680; 3.40 ÷ 85.50; 3.40 ÷ 72.00
$680 a year · $56.67 a month · yield 3.98% · yield on cost 4.72%
Because you paid less than today's price, your yield on cost is above the current yield.
2A higher-yielding holding: 500 shares at $42.00 paying $1.80.
500 × 1.80 = 900; 1.80 ÷ 42
$900 a year · $75 a month · yield 4.29%
Twice the shares of Example 1 and a lower dividend per share produce more income — only shares × dividend matters.
3Bought above today's price: 1,000 shares of a $25 stock paying $1.00, bought at $30.
1,000 × 1.00; 1 ÷ 25; 1 ÷ 30
$1,000 a year · current yield 4.00% · yield on cost 3.33%
The dividend has not changed; the share price fell, so a new buyer gets a better yield than you do. Yield on cost measures your own return on the money you put in, not the attractiveness of the stock today.
4Example 1 with 5% dividend growth over 10 years.
3.40 × 1.05¹⁰ = 5.54; 200 × 5.54; reinvesting each year at $85.50 → 325.76 shares
Dividend $5.54 a share · income $1,107.65 as cash · $1,804.14 with dividends reinvested
Growth alone raises income 63% with no new money; reinvestment on top of growth compounds the share count as well, so income nearly triples (at an unchanged price).
Turn the formula around: capital needed = annual income target ÷ yield. Reaching for a 6% yield to halve the capital usually means accepting more risk — sectors with high payouts (energy, real-estate trusts, some utilities) or companies whose price has fallen because the market expects a cut. A diversified dividend portfolio in the 3–4% range is a more typical planning assumption.
| Portfolio yield | Capital for $12,000 a year ($1,000 a month) |
|---|---|
| 3% | $400,000 |
| 4% | $300,000 |
| 5% | $240,000 |
| 6% | $200,000 |
Growth: many companies raise the dividend each year. Future dividend per share = today's dividend × (1 + growth)^years. If Example 1's $3.40 grows 5% a year, in ten years it is 3.40 × 1.05¹⁰ = $5.54 a share and the 200 shares pay $1,107.65 a year, with no new money invested — and the yield on your $72 cost becomes 7.7%. Historical dividend growth is on the company's investor-relations page or in the 5- and 10-year records that data providers publish.
Reinvestment (DRIP): using each year's dividends to buy more shares compounds the share count. With Example 1 at a constant $85.50 price and $3.40 dividend, the table shows three years; after them the holding pays $764 a year instead of $680, a 12% rise from reinvestment alone. Brokers' DRIP plans do this automatically, often buying fractional shares; reinvested dividends are still taxable income in the year they are paid.
| Year | Shares at start | Income | Shares bought | Shares at end |
|---|---|---|---|---|
| 1 | 200.00 | $680.00 | 7.95 | 207.95 |
| 2 | 207.95 | $707.04 | 8.27 | 216.22 |
| 3 | 216.22 | $735.15 | 8.60 | 224.82 |
"Monthly income" is the annual figure divided by twelve. Most US companies pay quarterly, so Example 1's $680 arrives as four payments of $170; UK companies often pay twice a year; some funds and real-estate trusts pay monthly. For a portfolio, payment dates spread across the year, and the monthly figure becomes a fair average. For a single holding, plan around the actual payment dates — the company's dividend calendar lists the ex-dividend date (you must own the shares before it) and the payment date.