CATCO Tools

Dividend Income Planner

Calculate annual and monthly dividend income, yield on cost and growth projection.

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INCOME INPUT
DIVIDEND OUTPUT
CURRENT ANNUAL INCOME$200.00BASED ON YOUR INPUTS
MONTHLY AVERAGE$16.67
DIVIDEND YIELD4%
INVESTED CAPITAL$5,000.00
PROJECTED ANNUAL INCOME$325.78

Dividend Income Planner calculation coverage

  1. 01

    Current annual income

  2. 02

    Yield on cost

  3. 03

    Dividend growth projection

Dividends can be reduced or suspended and projections exclude taxes and reinvestment.

Overview

About this tool

The dividend calculator multiplies your shares by an assumed annual dividend per share. It shows annual income, monthly average income and yield at one entered share price. Use current price for current yield or original unit cost for yield on cost; run each scenario separately.

Method

How it works

Annual income = shares × annual dividend per share. Monthly average = annual income ÷ 12. Yield = annual dividend per share ÷ entered share price. Future income applies the assumed dividend growth rate without reinvestment.

Inputs and outputs used by the Dividend Income Planner
ParameterHow it is used
SharesQuantity eligible for the modeled dividend.
Dividend per shareAnnual cash distribution assumption.
Reference share priceUse market price for current yield or purchase cost for yield on cost, one calculation at a time.
Dividend growthModels hypothetical future income.
Worked example

Annual income versus monthly average

100 shares, a $50 reference share price and a $2 annual dividend per share. No growth, tax or reinvestment.

Annual income = 100 × $2 = $200. Monthly average = $200 ÷ 12 = $16.67. Yield = $2 ÷ $50 = 4%.

$200 annual income, about $16.67 per month on average and a 4% yield at the entered price.

A monthly average is not a payment schedule. If $50 is your cost, the result is yield on cost; if it is today's price, it is current yield.

How to use this tool

  1. Enter shares, the assumed annual dividend per share and a reference share price.
  2. Choose current market price or purchase cost depending on the yield you want to measure.
  3. Use a hypothetical growth assumption and compare annual income with its monthly average.
Common questions

Frequently asked questions

What is yield on cost?

Yield on cost is current annual dividend income divided by the original cost of the position. It differs from current market yield.

Is a higher dividend yield always better?

No. A high yield can reflect a falling share price or an unsustainable distribution. Cash flow and payout quality still require analysis.

Does the projection include reinvestment?

No. The growth projection changes dividend per share but does not automatically buy additional shares.