Q&A for How to Calculate Dividends

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  • Question
    If you own your company and have $700,000 in profit, what is the amount of money paid on dividends?
    Donagan
    Top Answerer
    That is entirely up to company management. It may choose to pay any amount in dividends -- or none at all.
  • Question
    If I have invested $8,000 in mutual funds, which are, 23 years later, worth $11,0000, how much interest have I earned?
    Donagan
    Top Answerer
    You should have received an annual statement from the mutual fund company telling you how much interest you earned each year. They keep records of that information and should be able to supply it now if you don't have the records in your possession. You can't simply subtract your initial investment from the current value, because presumably some (perhaps most) of the gains you've made over the years represent investment gains rather than interest.
  • Question
    My accountant said I have dividends that I have not taken from my company. What does that mean? There is no money in my company's account.
    Donagan
    Top Answerer
    If there's no money in your stockholder's account, there can't be any dividend payments contained there. Ask your accountant what's going on.
  • Question
    What does it mean when the share price decreases?
    Donagan
    Top Answerer
    Price movements reflect supply and demand. If a stock's price falls, that indicates the buying public is simply not as interested in acquiring shares of that stock as it used to be, or the drop may occur after the company has issued more shares.
  • Question
    What does it mean by total dividends?
    Donagan
    Top Answerer
    Total dividends are regular dividends plus "special" (one-time) dividends.
  • Question
    Is it better to have a stock paying 7.5% dividend at stock cost of $12.06 per share, or 6.8% dividend of stock at price of $28.03 per share?
    Community Answer
    Simple math will tell you that you will make approximately $.09 for each share in a year on the 7.5% stock, and $1.90 on the 6.8% stock. The % stated typically does not include special dividend payments. Dividends are not guaranteed and can be adjusted or taken away altogether at anytime with the approval of the board of directors.
  • Question
    After 14 years, I have 250 shares and each share is valued at $43.71. How many dividends will be paid to me?
    Donagan
    Top Answerer
    You would have to know the announced "dividends per share" (DPS) of the stock in order to calculate the number of dividends coming to you.
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