Dividend calculator
Dividend income per year = number of shares × annual dividend per share. Enter either the amount you invest or your number of shares, plus the share price and annual dividend, to see your income per year, month and payout, your yield, and how much you would need to invest for a target monthly income.
How to calculate dividend income
Dividend yield = annual dividend per share ÷ share price. Annual income = shares × annual dividend per share = amount invested × yield. Monthly income = annual income ÷ 12. Per-payout income = annual income ÷ payouts per year. To earn a target monthly income, you need (target × 12) ÷ yield invested.
Use the trailing 12-month dividend (the total actually paid over the last year) unless the company has announced a new rate. Income is before taxes; qualified dividends and ordinary dividends are taxed at different rates.
Common questions
How much do I need to invest to make $1,000 a month in dividends?
You need $12,000 a year of dividends, so the investment needed is $12,000 ÷ yield. At a 4% yield that is $300,000; at 6%, $200,000; at 10%, $120,000.
What is a good dividend yield?
There is no single answer: broad US stock indexes have historically yielded around 1–2%, many dividend-focused funds 3–4%, and some option-income funds far more. Very high yields often come with falling share prices or unsustainable payouts.
Is dividend yield the same as return?
No. Total return = dividends + change in share price. A high yield with a falling share price can still lose money.
Related calculators
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Last reviewed October 31, 2026. This calculator gives estimates for education and planning only. Results depend entirely on the numbers you enter and the assumptions stated on this page; they are not investment, tax or trading advice, and real results will differ.