Dividend Rate

What is the '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.

BREAKING DOWN '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.

RELATED TERMS
  1. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  2. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  3. Dividend

    A distribution of a portion of a company's earnings, decided ...
  4. Yield On Cost - YOC

    The annual dividend rate of a security divided by the average ...
  5. Retractable Preferred Shares

    A specific type of preferred stock thats lets the owner sell ...
  6. Common Stock

    A security that represents ownership in a corporation. Holders ...
Related Articles
  1. Investing Basics

    Stock Basics Tutorial

    If you're new to the stock market and want the basics, this is the tutorial for you!
  2. Investing

    Dividend Yield For The Downturn

    High-dividend stocks make excellent bear market investments, but the payouts aren't a sure thing.
  3. Investing Basics

    How And Why Do Companies Pay Dividends?

    If a company decides to pay dividends, it will choose one of three approaches: residual, stability or hybrid policies. Which a company chooses can determine how profitable its dividend payments ...
  4. Markets

    Your Dividend Payout: Can You Count On It?

    We go over several telling factors that can help you answer this question and avoid losses.
  5. Taxes

    The Top 5 Countries for Dividend Investing (WBK, BBL)

    Read about the five best foreign countries for American dividend investors, based on a ranking of their average after-tax dividends and tax-withholding laws.
  6. Investing

    Earnings Guide: 3 Insights to Consider in U.S. Markets (QCOM, V)

    Assess current earnings trends that affect financial decisions in today's volatile market, focusing on ratios, dividends and sectors.
  7. Investing

    ConAgra Stock to Trade Ex-Dividend (CAG)

    The company has found ways to beat Wall Street earnings estimates in the previous two quarters by an average of 8 cents per share.
  8. Investing

    The Top 5 Companies Paying Dividends (JNJ, XOM)

    Explore analyses of the top five dividend-paying companies, and learn about their trailing 12-month dividend payouts and dividend payout ratios.
  9. Stock Analysis

    Altria Group vs. Reynolds American: Which Is Better for My Portfolio?

    Find out whether Altria or Reynolds American is a better high-dividend yielding consumer defensive "sin stock" to add to your portfolio.
  10. Mutual Funds & ETFs

    Is this Vanguard Prime Money Market Fund Worth It? (VMMXX)

    Find out if the Vanguard Prime Money Market Fund is a suitable choice for investing cash in today's low-interest-rate environment.
RELATED FAQS
  1. I would like to invest in a dividend-paying stock. How can I find out which stocks ...

    There are several accessible sources to help investors identify dividend-paying stocks. Here are a few we can recommend: ... Read Answer >>
  2. Can a company declare a dividend that exceeds its earnings per share?

    Yes, it can. In fact, many well-known Fortune 500 companies have paid dividends in years where they posted negative earnings ... Read Answer >>
  3. What are common advantages of investing in large cap stocks?

    Learn what large-cap stocks are and how investors can benefit from common advantages of adding large-cap stocks to their ... Read Answer >>
  4. Is dividend income taxable?

    Understand the laws and regulations regarding taxation of dividends, and know the rates at which dividend income is usually ... Read Answer >>
  5. Which mutual funds made money in 2008?

    Read about the only mutual fund that turned a profit in 2008. Learn about risk-averse investment strategies and the financial ... Read Answer >>
  6. What are the dividend reinvestment options for a mutual fund?

    Learn about the options that shareholders have for dividend distributions made by mutual funds and why a shareholder may ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center