Dividend Yield Calculator

Estimate dividend income, reinvestment growth, and total returns on stocks. Figures are illustrative only.

Investment Amount

₦

50,00050,000,000

Share Price

₦

110,000

Annual Dividend Yield

0.530

Annual Dividend Growth Rate

020

Annual Share Price Growth

020

Investment Duration

years

130

Withholding Tax (WHT)

030

Reinvest Dividends (DRIP)

Estimated Results

Initial Investment

₦1,000,000

Capital Gains

₦1,809,810

Dividend Value (Reinvested)

₦1,465,894

Total Portfolio Value₦2,809,810

Disclaimer

This calculator is for educational and illustrative purposes only. It does not constitute financial, investment, or tax advice. Results are estimates based on the inputs you provide and may not reflect actual returns. Consult a qualified financial advisor before making any investment decisions.

Turn The Numbers Into a Plan

Use these calculators to model outcomes, then see how Shares Saver helps you build direct ownership of Nigerian stocks through a regulated, long-term investing process.

Explore the Investment App Learn About Direct Ownership

How Is This Calculated?

Annual Dividend = Shares × DPS × (1 − Tax Rate)

Where:

SharesNumber of shares held (increases each year with DRIP)

DPSDividend per share, growing at the dividend growth rate annually

Tax RateWithholding tax deducted from gross dividends (default 10% in Nigeria)

DRIPNet dividends are used to buy additional shares at the current share price

Capital GainsShare price appreciation over the investment duration

Frequently Asked Questions

Dividend yield is the annual dividend payment expressed as a percentage of a stock's current share price. For example, if a stock costs ₦100 and pays ₦8 per year in dividends, the dividend yield is 8%. It helps investors compare the income-generating potential of different stocks.

DRIP stands for Dividend Reinvestment Plan. Instead of receiving dividend payments as cash, you use the dividends to purchase additional shares. Over time, this creates a compounding effect — your growing number of shares generates ever-larger dividend payments, which buy even more shares.

In Nigeria, a 10% withholding tax is deducted at source on dividend payments to resident individuals and companies. This means if your gross dividend is ₦10,000, you receive ₦9,000 after WHT. The tax is collected by the paying company on behalf of the Federal Inland Revenue Service (FIRS).

Dividend growth investing focuses on companies that consistently increase their dividend payments year after year. A company with a 5% annual dividend growth rate doubles its dividend roughly every 14 years. This strategy aims to build a growing income stream and is popular among long-term investors.

Total return on a stock investment includes both dividend income and capital gains (share price appreciation). Even if a stock has a modest dividend yield, share price growth can significantly boost your overall return. This calculator separates these components so you can see the full picture.

No. This calculator provides estimates based on the inputs you provide. Actual dividend payments depend on company performance and board decisions, and share prices fluctuate with market conditions. Past performance does not guarantee future results. Always conduct thorough research before investing.