How To Calculate Dividend Revenue
While this includes stocks that don t pay dividends calculating dividends this way gives you a percentage that tells you how well the dividend income of a given stock.
How to calculate dividend revenue. You can calculate dividend growth for individual stocks you own or you can calculate a stock s dividend yield as a percentage of the value of your entire portfolio. Meaning company a could be a better bet for an income investor. Take the retained earnings at the beginning of the year and. For instance an investor who s looking for a steady regular source of income might invest in a company with a high dividend yield.
Use dividend yields to compare investment opportunities. Investors often use dividend yields to determine whether to make certain investments or not.