What is a dividend calculator & how does it work?

Forbes Advisor’s Dividend Calculator helps investors understand precisely how much they’re earning in dividends over a period of time, factoring in the company’s stock price, number of shares owned, holding periods, annual dividend yield, tax rates and increases in the company’s dividend payouts and stock price.

What is a stock dividend?

Its regular quarterly dividend rate remained 13 cents per share. A stock dividend is a dividend paid as shares of stock instead of cash. You can sell these dividend shares for an immediate payoff, or you can hold them. A stock dividend functions essentially like an automatic dividend reinvestment program (more on that below).

What is a dividend yield?

The dividend yield of a stock is the dividend amount paid per share and is expressed as a percentage of the company's share price, such as 2.5%. Not all companies pay dividends to the owners of common shares. (Owners of preferred shares are guaranteed a set dividend payment.)