diff --git a/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator-msft-buy-with-dividend.spec.ts b/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator-msft-buy-with-dividend.spec.ts
index 051b75e9b..0f68c1358 100644
--- a/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator-msft-buy-with-dividend.spec.ts
+++ b/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator-msft-buy-with-dividend.spec.ts
@@ -526,5 +526,168 @@ describe('PortfolioCalculator', () => {
       expect(portfolioSnapshot).toHaveProperty('annualizedDividendYield');
       expect(portfolioSnapshot.annualizedDividendYield).toBeCloseTo(0.0184, 4);
     });
+
+    it('ignores dividends older than 12 months when aggregating portfolio yield', async () => {
+      jest.useFakeTimers().setSystemTime(parseDate('2023-07-10').getTime());
+
+      const activities: Activity[] = [
+        // MSFT: 1 share @ 300, 3 dividends total (one older than 12 months)
+        {
+          ...activityDummyData,
+          date: new Date('2021-09-16'),
+          feeInAssetProfileCurrency: 0,
+          feeInBaseCurrency: 0,
+          quantity: 1,
+          SymbolProfile: {
+            ...symbolProfileDummyData,
+            currency: 'USD',
+            dataSource: 'YAHOO',
+            name: 'Microsoft Inc.',
+            symbol: 'MSFT'
+          },
+          type: 'BUY',
+          unitPriceInAssetProfileCurrency: 300
+        },
+        {
+          ...activityDummyData,
+          date: new Date('2021-11-16'),
+          feeInAssetProfileCurrency: 0,
+          feeInBaseCurrency: 0,
+          quantity: 1,
+          SymbolProfile: {
+            ...symbolProfileDummyData,
+            currency: 'USD',
+            dataSource: 'YAHOO',
+            name: 'Microsoft Inc.',
+            symbol: 'MSFT'
+          },
+          type: 'DIVIDEND',
+          unitPriceInAssetProfileCurrency: 0.62
+        },
+        {
+          ...activityDummyData,
+          date: new Date('2022-08-16'),
+          feeInAssetProfileCurrency: 0,
+          feeInBaseCurrency: 0,
+          quantity: 1,
+          SymbolProfile: {
+            ...symbolProfileDummyData,
+            currency: 'USD',
+            dataSource: 'YAHOO',
+            name: 'Microsoft Inc.',
+            symbol: 'MSFT'
+          },
+          type: 'DIVIDEND',
+          unitPriceInAssetProfileCurrency: 0.65
+        },
+        {
+          ...activityDummyData,
+          date: new Date('2023-05-16'),
+          feeInAssetProfileCurrency: 0,
+          feeInBaseCurrency: 0,
+          quantity: 1,
+          SymbolProfile: {
+            ...symbolProfileDummyData,
+            currency: 'USD',
+            dataSource: 'YAHOO',
+            name: 'Microsoft Inc.',
+            symbol: 'MSFT'
+          },
+          type: 'DIVIDEND',
+          unitPriceInAssetProfileCurrency: 0.65
+        },
+        // IBM: 1 share @ 200, 2 dividends total (one older than 12 months)
+        {
+          ...activityDummyData,
+          date: new Date('2021-10-01'),
+          feeInAssetProfileCurrency: 0,
+          feeInBaseCurrency: 0,
+          quantity: 1,
+          SymbolProfile: {
+            ...symbolProfileDummyData,
+            currency: 'USD',
+            dataSource: 'YAHOO',
+            name: 'IBM',
+            symbol: 'IBM'
+          },
+          type: 'BUY',
+          unitPriceInAssetProfileCurrency: 200
+        },
+        {
+          ...activityDummyData,
+          date: new Date('2022-06-01'),
+          feeInAssetProfileCurrency: 0,
+          feeInBaseCurrency: 0,
+          quantity: 1,
+          SymbolProfile: {
+            ...symbolProfileDummyData,
+            currency: 'USD',
+            dataSource: 'YAHOO',
+            name: 'IBM',
+            symbol: 'IBM'
+          },
+          type: 'DIVIDEND',
+          unitPriceInAssetProfileCurrency: 1.65
+        },
+        {
+          ...activityDummyData,
+          date: new Date('2023-06-01'),
+          feeInAssetProfileCurrency: 0,
+          feeInBaseCurrency: 0,
+          quantity: 1,
+          SymbolProfile: {
+            ...symbolProfileDummyData,
+            currency: 'USD',
+            dataSource: 'YAHOO',
+            name: 'IBM',
+            symbol: 'IBM'
+          },
+          type: 'DIVIDEND',
+          unitPriceInAssetProfileCurrency: 1.65
+        }
+      ];
+
+      const portfolioCalculator = portfolioCalculatorFactory.createCalculator({
+        activities,
+        calculationType: PerformanceCalculationType.ROAI,
+        currency: 'USD',
+        userId: userDummyData.id
+      });
+
+      const portfolioSnapshot = await portfolioCalculator.computeSnapshot();
+
+      const msftPosition = portfolioSnapshot.positions.find(
+        ({ symbol }) => symbol === 'MSFT'
+      );
+      const ibmPosition = portfolioSnapshot.positions.find(
+        ({ symbol }) => symbol === 'IBM'
+      );
+
+      expect(msftPosition.dividendInBaseCurrency).toEqual(new Big('1.92'));
+      expect(ibmPosition.dividendInBaseCurrency).toEqual(new Big('3.3'));
+
+      const msftDividendLast12Months = new Big('1.3');
+      const ibmDividendLast12Months = new Big('1.65');
+      const totalInvestment = new Big('500');
+
+      expect(msftPosition.annualizedDividendYield).toBeCloseTo(
+        msftDividendLast12Months.div(new Big('300')).toNumber(),
+        6
+      );
+      expect(ibmPosition.annualizedDividendYield).toBeCloseTo(
+        ibmDividendLast12Months.div(new Big('200')).toNumber(),
+        6
+      );
+
+      const expectedAnnualizedDividendYield = msftDividendLast12Months
+        .plus(ibmDividendLast12Months)
+        .div(totalInvestment)
+        .toNumber();
+
+      expect(portfolioSnapshot.annualizedDividendYield).toBeCloseTo(
+        expectedAnnualizedDividendYield,
+        6
+      );
+    });
   });
 });
diff --git a/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator.ts b/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator.ts
index 8f29c618e..a971d1c8e 100644
--- a/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator.ts
+++ b/apps/api/src/app/portfolio/calculator/roai/portfolio-calculator.ts
@@ -34,7 +34,7 @@ export class RoaiPortfolioCalculator extends PortfolioCalculator {
     let grossPerformanceWithCurrencyEffect = new Big(0);
     let hasErrors = false;
     let netPerformance = new Big(0);
-    let totalDividendsInBaseCurrency = new Big(0);
+    let totalDividendsLast12MonthsInBaseCurrency = new Big(0);
     let totalFeesWithCurrencyEffect = new Big(0);
     const totalInterestWithCurrencyEffect = new Big(0);
     let totalInvestment = new Big(0);
@@ -47,10 +47,13 @@ export class RoaiPortfolioCalculator extends PortfolioCalculator {
         return includeInTotalAssetValue;
       }
     )) {
-      if (currentPosition.dividendInBaseCurrency) {
-        totalDividendsInBaseCurrency = totalDividendsInBaseCurrency.plus(
-          currentPosition.dividendInBaseCurrency
-        );
+      if (currentPosition.investmentWithCurrencyEffect) {
+        totalDividendsLast12MonthsInBaseCurrency =
+          totalDividendsLast12MonthsInBaseCurrency.plus(
+            new Big(currentPosition.annualizedDividendYield ?? 0).mul(
+              currentPosition.investmentWithCurrencyEffect
+            )
+          );
       }
 
       if (currentPosition.feeInBaseCurrency) {
@@ -114,7 +117,7 @@ export class RoaiPortfolioCalculator extends PortfolioCalculator {
 
     // Calculate annualized dividend yield for the entire portfolio
     const annualizedDividendYield = totalInvestmentWithCurrencyEffect.gt(0)
-      ? totalDividendsInBaseCurrency
+      ? totalDividendsLast12MonthsInBaseCurrency
           .div(totalInvestmentWithCurrencyEffect)
           .toNumber()
       : 0;