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.
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.