Orchid Island Capital, Inc. (ORC) Dividend Calculator

Multiply the shares you own by the dividend per share. For a quick estimate, multiply the amount you invest by the dividend yield: $10,000 at a 3% yield pays about $300 a year, usually in four payments. This calculator works from a company's real dividends over the last 12 months.

You need $12,000 a year. At a 3% yield that takes about $400,000. At 4%, about $300,000. A much higher yield shrinks the number, but a very high yield often means the market expects a cut.

Most healthy dividend stocks yield between 2% and 5%. Above about 6–8%, ask why: the yield may be high because the price fell on real problems. A yield means little without the payout ratio and steady earnings and cash flow behind it.

Check three things. First, the payout ratio (dividends ÷ earnings): steady payers usually stay under about 60%. Second, whether free cash flow covers the dividend. Third, the balance sheet. A dividend paid with debt, or larger than free cash flow, is at risk whatever its history.

In most countries, yes. In the US, qualified dividends are taxed at capital gains rates and other dividends as income. Reinvested dividends are taxed in the year they are paid, even if you never see the cash. This calculator shows figures before tax.