A dividend means that the company gives some percentage of profits to its shareholders. The corporation pays a dividend based on compound frequency(like monthly, quarterly, yearly) but it depends on the corporation which frequency they choose to pay a dividend. Another important and unchanged part is that the dividend paid out per share of the stock.
In the financial history of the world, the Dutch East India Company (VOC) was the first company ever to pay regular dividends to its stockholders. Almost 200 years VOC paid annual dividends worth around 18 percent of the profit.
People have to know that not all stocks pay a dividend. If you want to earn dividends from stocks then you have to focus on the particular dividend paying stocks.
The formula for calculating dividend yield and profit is as follows:
Calculate, dividend yield = (annual dividend / stock price) * 100
Calculate dividend reinvenstment or profit of the stocks: FB = ID * (1 + R / CF)(T*CF)
- FB - Final balance or future value of the investment
- ID - Money invested or initial deposit
- R - Dividend yield
- T - Number of years money is invested for
- CF - Compound frequency means that the dividend is how many times compounded per year.
What can you do with Dividend Calculator?
- It helps to calculate dividend yield with profit from the dividend stocks and helps to project your future dividend earnings.
- Users can see the accurate value of final balance, profit, dividend yield and overall growth. And also can see the final balance in words.
- The chart represents the growth of the total amount and invested money by the scale of two years.
- Users can easily see their calculations in detail by the table. Based on the selected compound frequency table describes the opening balance, your earned profit, closing balance and period.
- This calculator helps to share your calculations by URL.