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Dividend Yield Calculator

Enter the current share price and the annual dividend per share to see the dividend yield. Optionally add your number of shares to estimate annual dividend income.

Inputs

Results

Dividend Yield: 0.00%
Annual Dividend Income: $0.00

What is Dividend Yield?

Dividend yield compares the amount of money a company pays in dividends each year to its share price. Investors use it as a simple way to evaluate income among dividend stocks.

  • Income focus: For income, a higher yield can mean more cash in hand today.
  • Total return context: Remember, it’s just part of total return (price change + dividends).
  • Quality matters: Extremely high or low yield can be a sign of risk (falling price, unsustainable payout, etc.)

Formula

Dividend Yield (%) = (Annual Dividend per Share ÷ Price per Share) × 100

Example: If a stock is currently yielding $3.00 per share per year in dividends and it’s trading at $100 per share, the dividend yield is calculated as (3 ÷ 100) × 100 = 3.00%.

How to Use This Calculator

  1. Step 1: Enter the current price per share.
  2. Step 2: Enter the annual dividend per share (the total of all expected dividends over the next 12 months).
  3. Step 3: (Optional) Enter the number of shares you own to estimate the annual dividend you will receive from this stock.
  4. Step 4: As you enter data in the calculator, results will update automatically.

Dividend Yield vs. Dividend Payout Ratio

Dividend yield is different from dividend payout ratio, which compares dividends per share to earnings per share. Both are high, it’s just a matter of relative interest rates. A high yield is more attractive if the payout ratio is low.

To better assess the sustainability of a dividend, also review the Dividend Payout Ratio Calculator.

What Is a Good Dividend Yield?

It depends on the sector of the stock and the interest-rate environment.

  • Blue chip stocks: 2–4%.
  • Utilities/REITs: 3–6%.
  • High yield: 7% or more can be attractive, but warrants a much closer risk/reward and risk profile analysis.

Limitations and Tips

  • Dividend yield can increase as price declines. Check the underlying business fundamentals.
  • Forward yield (looking at the next 12 months) is usually the most timely measure if it’s available.
  • Investigate yield along with other factors such as dividend growth, payout ratio, and earnings stability.

Frequently Asked Questions

Is dividend yield the same as total return?

No, total return accounts for price appreciation (gain or loss) and dividend income.

What’s the difference between trailing and forward yield?

Trailing yield uses the most recent 12 months of dividends. Forward yield uses dividends expected to be paid over the next 12 months.

Can a very high yield be risky?

Yes, it can be the sign of a falling stock price or a dividend payout that may be cut in the future.