One plus one equals two What's up money gigsmas of V here welcome to another video guys so in today's video I want to answer a question that I've actually gotten a lot from people asking me about dividend stocks so the question that I've been getting is How do I know how much I'm gonna get each month or each quarter on dividends? I know they give me the dividend Yeal but how do I know the exact dollar amount that I get every month from the stocks that I invest and so I don't want to have to like go through the entire process and like Respond to other questions. I'm just gonna do a video here that we're gonna help people that are maybe wondering and just wanted to know But how to calculate that number so and again in this situation we're gonna use a hypothetical number because We don't really have or a specific I don't want to use a specific company or whatever so using hypothetical numbers You can use this and apply it to every other company that pays dividends that you have in your portfolio. So Let's jump into it in on the board here already have some some stuff set up that you can actually see So actually the formula if you didn't know how much you're gonna get or The dividends per share is very simple. So it's D over S where D is the sum of the dividends over a period so it could be a Year or it could be a quarter or it could be Maybe a month so and that's what D stands for then Your S is just the ordinary shares. So how many shares of that company are out there? So the company might have a hundred thousand shares a million shares a billion shares How many of the outstanding shares does this company have so that's the basic formula for you to be able to calculate The dividends per share again. I'm gonna repeat again is Just the sum of the dividend over a period that that company is gonna pay out could be monthly or could be quarterly could be Year and then divide that by the outstanding number of shares So when you start a simple example here, maybe do you can explain this better for you guys? So Let's assume that you An investor that buys dividend stocks, right? And that's what we're talking about here dividend stocks and you buy say a thousand shares of a Company Mr. V stocks in I'm just gonna for example and then Assume that on a monthly basis you get dividends from that company and This particular month the company says we're gonna pay $22 million in dividends To the shareholders and then the company house They have an outstanding number of shares they have 20 million Ordinary shares, right? So if you take this number that's giving you now you can calculate your dividends per share very easily So basically the way you're gonna do this is if you just divide There's two million You divide two million over the 20 million shares that are outstanding Here so this will probably give something like 0.1 Right so that is the dividend per share that you would get so you get you get about one cent per share But in your case you bought a thousand shares of Mr. V So how much are you gonna get at the end of the month when they pay that dividends? You take that number in your case 0.1 times 1000 which is a number of shares that you bought and That's gonna give you about a hundred dollars So at the end of the month if you own a thousand shares of Mr. V based on this example you'll get 100 dollars Deposit it into your account. That is how you calculate dividends per share so if you're wondering how To calculate it or to know exactly how much you're gonna get from that company that you bought their dividend stocks This is the formula again. Just gonna a quick recap here. This is supposed to be a very short video dividend per share is equals to D over S where D is a sum of dividends over a period so the company will tell you how much you want to pay over that period That is what you get for D S is their outstanding number of shares that that company has out there and then Once you take that and get in her example We say that the company wants to pay two million dollars in dividends for that particular month And then they have 20 million outstanding shares So we take two million divided by 20 million gives you one cent and then if you multiply that by 1000 you get a hundred dollars because you own a thousand shares of Mr. V so that's pretty much the way it works I hope this video is very helpful again. I just want to answer this quick question that I've been getting a lot from people Asking how much you're gonna get if they're by a certain amount of shares in a particular dividend paying Company so let me know in the comment section we have any other questions or just any any suggestions as to what you want me to cover And as always if you haven't already subscribed to the channel go ahead and hit that subscribe button and notification bell because YouTube keeps telling me that 90% of you guys are not yet subscribed to my channel I will really appreciate it if you can hit that subscribe button and notification bell to that one that post new videos You'll get them right the way and be able to stay in form and as always guys stay safe Wash your hands don't touch your face. Keep everybody around you safe, and I wish you the best and always stay motivated