Checking whether a dividend position meets an income goal
You are reviewing an income-focused stock or ETF and want to know how much annual cash flow the current position size may generate.
Buy price$25
Annual dividend per share$1.2
Shares held500
This shows both yield on cost and estimated annual cash flow, which is more useful than yield alone when planning income targets.
Comparing the same dividend at different entry prices
You want to see how much yield-on-cost changes if the same dividend stream is bought at a lower or higher price.
Buy price$18.5
Annual dividend per share$0.9
Shares held800
Keep the dividend assumption constant and test different buy prices. That reveals how entry price changes your personal yield even when the asset stays the same.