Investing
Annual dividend income
Multiply the number of shares by the annual dividend per share. The price paid is irrelevant to the income and matters only to the yield.
The Formula
annual income = shares x dividend per share
Multiply the number of shares by the annual dividend per share. The price paid is irrelevant to the income and matters only to the yield.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| N | Shares | shares | How many shares are held. |
| DPS | Dividend per share | currency | Annual dividend for one share. |
| I | Annual income | currency | Total cash received from dividends. |
What Each Symbol Means
Nshares
Shares
How many shares are held.
DPScurrency
Dividend per share
Annual dividend for one share.
Icurrency
Annual income
Total cash received from dividends.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate dividend income page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Dividend Income, filed under Finance. Every number the guide produces comes from substituting into this one line.