Dividend yield measures the cash income a stock returns to shareholders each year, expressed as a percentage of its share price. It is one of the most widely used metrics for income-focused investors, but it can be misleading in isolation — a high yield can signal either a well-run, cash-generative company or a stock in decline.
This calculator estimates your current yield, annual and monthly dividend income, and — with dividend reinvestment (DRIP) enabled — how your portfolio could grow over time as both share price and dividend payments increase.
The Variables This Calculator Measures
- Dividend Yield — annual dividend per share divided by current share price.
- Yield on Cost — your dividend income measured against your original purchase price, not the current market price.
- DRIP (Dividend Reinvestment) — using dividend payouts to automatically purchase additional shares rather than taking them as cash.
- Withholding Tax — Nigerian dividend income is subject to a 10% withholding tax, deducted before you receive payment.
- Dividend & Price Growth Assumptions — illustrative annual growth rates you can adjust or select via preset scenarios.
A high yield is not automatically a good yield — it can reflect a falling share price rather than a generous payout. For a deeper look at how to evaluate dividend-paying stocks on the Nigerian Exchange, see our guide: Read our complete guide to dividend investing in Nigeria.
Dividend Yield & Income Calculator
Estimate your yield, annual income, and projected portfolio growth
Advanced Settings (Growth Assumptions)
| Year | Portfolio Value | Annual Dividend | Shares | Share Price | Total Profit |
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Calculation Methodology
Annual Dividend Income = Shares Owned × Annual Dividend Per Share × (1 − Tax Rate)
Yield on Cost = Annual Dividend Per Share ÷ Original Purchase Price per Share
Each projected year: Dividend income is calculated, tax is deducted, and — if DRIP is enabled — the after-tax amount buys additional shares at the current (growing) share price.
Interpreting Your Yield
Worked Example
Consider a hypothetical NGX-listed company trading at ₦280 per share, paying an annual dividend of ₦18 per share. Dividend yield = ₦18 ÷ ₦280 = 6.43%, placing it in the “often attractive” range above. Before investing on that basis alone, an investor would still want to check the company’s payout ratio, earnings trend, and debt level — figures here are illustrative only and do not reflect any specific company’s actual dividend history.
Sources
Dividend announcements, share prices, and corporate actions for Nigerian-listed companies are published by the Nigerian Exchange Group (NGX). The Securities and Exchange Commission (SEC Nigeria) regulates the capital market and enforces disclosure standards. This calculator performs arithmetic only on the figures you provide and does not pull live share prices or dividend data.
Disclaimer: Dividend income is not guaranteed. Dividends depend on company profits and board decisions and can be reduced or suspended at any time. Past dividend payments do not guarantee future payouts. All figures are illustrative estimates based on the assumptions you enter and do not constitute financial advice. Consult a licensed financial advisor before making investment decisions.