How to Calculate Dividends

by Neil Kokemuller ; Updated July 27, 2017
Established companies often maintain a steady dividend rate for several years.

Investors often like dividend-paying stocks because they provide ongoing income opportunities. Companies pay periodic dividends to reward shareholders and to motivate ongoing investment interest. To calculate your dividend amount, multiply the periodic dividend the company declares per share by the total amount of shares you own.

Quarterly Dividend Example

Companies typically declare dividends by the quarter or year. If your stock pays $0.20 per share each quarter, and you own 2,000 shares, multiply $0.20 by 2,000 to compute your quarterly dividend. In this case, you would receive a $400 dividend on the payout date if you were a shareholder of record on the execution date.

Annual Dividend Example

Companies may declare dividends on an annual basis, but pay them quarterly or annually. For an annual dividend, just multiply the declared amount per share by your total shares as you do with a quarterly dividend. If the company indicates an annual dividend of $1, but it makes quarterly payments, it equates to $0.25 each quarter.

About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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