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How do you find dividend rates?

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Quick Answer

To find a dividend rate, multiply the latest periodic dividend payments by the annual periods, states Investopedia. Assuming that an investment pays a $2.00 semi-annual dividend and a $0.75 extra dividend on a share, the annual dividend rate is ($4.75 x $2.00 x 2) + ($4.75 x $0.75), or $22.5625.

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Full Answer

A dividend rate is the sum of total dividends that a company pays in one year and any extra nonrecurring dividends it pays during the same year, according to Investopedia. While some companies adopt fixed dividend rates, others adopt adjustable dividend rates. The strategy and preference of a company determines its choice on the type of dividend rate.

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