Dividend Rate

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DEFINITION of 'Dividend Rate'

The total expected dividend payments from an investment, fund or portfolio expressed on an annualized basis plus any additional non-recurring dividends that may be received during that period.

Dividend Rate



Depending on the company's preferences and strategy, the dividend rate can be fixed or adjustible.

INVESTOPEDIA EXPLAINS 'Dividend Rate'

The dividend rate of an investment, fund or portfolio is calculated by multiplying the most recent periodic dividend payments by the number of periods in one year. For example, if a fund of investments pays a dividend of $0.50 on a quarterly basis and pays an extra dividend of $0.12 per share because of a non-recurring event from which the company benefited, the dividend rate is $2.12 ($0.50 x 4 + $0.12) per year.

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  3. If a long call is owned on the record date of a stock, is the owner of the option ...

    The owner of a long call for a stock is entitled to a dividend only if the option is exercised prior to the ex-dividend date, ... Read Full Answer >>
  4. When can I use the Dividend Discount Method (DDM) to value a stock?

    Investors can use the dividend discount model (DDM) for stocks that have just been issued or that have traded on the secondary ... Read Full Answer >>
  5. What is the average annual dividend yield of companies in the Internet sector?

    The average annual dividend yield of companies in the Internet sector is 0.02%. The dividend payout ratio for the sector ... Read Full Answer >>
  6. How is perpetuity used in the Dividend Discount Model?

    The basic dividend discount model (DDM) creates an estimate of the constant growth rate, in perpetuity, expected for dividends ... Read Full Answer >>
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