IN PLAIN ENGLISH
A year of dividend income divided by twelve — smooth, even though real payments arrive in lumps.
WHERE YOU MEET IT
The Monthly Dividend figure, and what the Income Planner compares with your target.
WATCH OUT FOR
No single month pays the average. Some months pay nothing at all.
FULL DEFINITION
Annual Dividend divided into an average monthly figure.
EXAMPLE
Annual Dividend = £2,400. Monthly Dividend = 2,400 ÷ 12 = £200.
HOW IT'S CALCULATED
Monthly Dividend = Annual Dividend ÷ 12. It is a flat average and does not reflect payment seasonality.
EXPLAINED IN
Educational content only. It is not personal financial advice.