Financial Term Explorer
Annual Dividend
Total dividends paid over one year. For quarterly payers, this is the sum of four quarters.
📝 Definition
**Annual Dividend** is the total dividends paid to shareholders over one year. For quarterly dividend companies, sum four quarters; for monthly payers, sum twelve months. This forms the basis for yield calculations.
In Simple Terms
If a company pays $1,000 per quarter, annual dividend is $4,000. Divide annual dividend by current stock price to calculate dividend yield.
Example
Apple pays $0.24 per share quarterly, so annual dividend is $0.96. With stock price at $180, yield is 0.96 ÷ 180 = 0.53%.
💡 Practical Tips
- 1Divide annual dividend by 12 for estimated monthly income.
- 2Calculate increase rates based on annual dividend changes.
- 3Forward Dividend refers to projected annual dividend.
⚠️ Common Mistakes
Looking at one quarter's dividend and miscalculating annual yield. Always annualize.
❓ Frequently Asked Questions
What's the difference between Forward and Trailing Dividend?▼
Trailing is actual last 12 months; Forward is projected next 12 months.