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