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A dividend calculator helps investors work out the income they can expect from dividend-paying shares, accounting for dividend yield, reinvestment (DRIP), tax rates, and compounding over time.
Trin-for-trin guide
- 1Find the annual dividend per share (or dividend yield × share price)
- 2Multiply by the number of shares held to get annual dividend income
- 3If reinvesting, compound each payment back into more shares at the current price
- 4Apply tax: dividends may be taxed at a preferential rate (qualified dividends) or as ordinary income
Løste eksempler
Input
500 shares · $2.40 annual dividend
Resultat
$1,200/year
$100/month passive income
Input
1,000 shares · 4% yield · $50 share price
Resultat
$2,000/year
$2 dividend per share × 1000