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 Says: 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. Related Terms: Arrearage Common Stock Cumulative Dividend Dividend Preferred Stock Quarter |