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How to Figure What the Dividend Payment Is on a Stock

Original post by C. Taylor of Demand Media

Dividends offer an additional incentive for stock investors by way of distributed profits. In addition to the potential gain from stock price increases, dividends pay a set amount annually for each share you own. The payments are usually divided into quarters, although a company may decide to distribute dividends in different periods. The dividend amount is freely available from your broker, so you can easily calculate the amount of your periodic dividend payment.

Step 1

Call your broker and ask what the dividend payment is for a given stock. You can also find this information by searching the ticker symbol on one of many financial websites, such as finance.yahoo.com, quote.com or moneycentral.msn.com. As an example, Intel Corporation offers a $0.84 annual dividend as of publication.

Step 2

Divide this dividend figure by the number of periods in a year. In most cases, payments are made quarterly, so you would divide by four. In the example, you would receive $0.21 per share quarterly.

Step 3

Multiply this figure by the number of shares you own. This derives your actual payment per period. In the example, if you had 500 shares of Intel stock, you would receive $105 per quarter.

                   

References

About the Author

C. Taylor has been a professional writer since 2009. He has written for online publications and the "Journal of Asian Martial Arts." Taylor specializes in martial arts, traveling, sciences and computer repair. He received a Master of Science in wildlife biology from Clemson University and a Bachelor of Arts in biological sciences from the College of Charleston.

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