Handeware
Investing

Shares needed

2,500
Income you want each year
$6,000.00
Cost of those shares
$150,000.00

This is arithmetic for general information, not financial advice.

Dividend Income Calculator

Find how many shares you would need to receive a set amount of dividends each month. Enter the income you want, the dividend per share over a year, and the price per share.

How it works

The yearly income you want is the monthly amount times twelve. Divide that by the dividend per share over a year, and round up to whole shares. The cost is the number of shares times the price per share.

The count assumes the dividend stays the same all year. Companies can cut or change dividends and prices move, so the result is a starting estimate.

Worked example

To receive $500.00 a month from dividends at $2.40 a share a year, you need 2,500 shares. At $60.00 each, they cost $150,000.00.

Questions

Why round up?

Most brokers need whole shares for this, so the count is rounded up to reach your target.

Does this include taxes?

No. Dividends may be taxed, so the amount you keep can be less than the dividend shown.

Does the price change the number of shares?

No. The count depends only on the dividend per share. The price changes what those shares cost to hold.

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