# Dividend Yield Calculator

URL: https://speedycalculator.com/calculators/finance/dividend-yield/
Last updated: 2026-10-25

> The dividend yield calculator works out a stock's dividend yield from the annual dividend per share and the share price, your yearly and monthly dividend income, and the yield on your original cost.

## Inputs

- Annual dividend per share
- Share price
- Shares owned
- Your purchase price per share

## Results

- Dividend yield
- Annual dividend income
- Average monthly income
- Yield on cost

## Formula

```
Dividend yield = annual dividend per share ÷ share price × 100
Annual income = dividend per share × shares
Yield on cost = annual dividend ÷ purchase price
```

## Explanation

Dividend yield tells income investors how much cash a stock returns each year relative to its price. Very high yields can signal a dividend cut ahead, so check the payout ratio too.

### How to use the Dividend Yield Calculator

- **Annual dividend per share**
- **Share price**
- **Shares owned**
- **Your purchase price per share**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the annual dividend per share, the share price, the shares you own and, optionally, your purchase price.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterAnnual dividend per shareAmount in your currencyShare priceAmount in your currencyShares ownedA numberYour purchase price per shareAmount in your currency

### What each result means

- **Dividend yield** = [Annual dividend per share]÷[Share price]×100
- **Annual dividend income** = [Annual dividend per share]×[Shares owned]
- **Average monthly income** = [Annual dividend per share]×[Shares owned]÷12
- **Yield on cost** = [Annual dividend per share]÷[Your purchase price per share]×100

### Example values

How the main result changes when **Annual dividend per share** changes and everything else stays at the example values above:

Annual dividend per shareDividend yield (%)1.221.832.44353.664.88

## Worked example

Inputs — Annual dividend per share: $2.4; Share price: $60; Shares owned: 200; Your purchase price per share: $45.

Results — **Dividend yield = 4 %**; Annual dividend income = $480.00; Average monthly income = $40.00; Yield on cost = 5.33 %.

## FAQ

**What is a good dividend yield?**
Around 2–5% is typical for established dividend payers.

**Why do yields rise when prices fall?**
The dividend stays the same while the price drops.

**Is a very high yield a good sign?**
Not always – it can signal the market expects a dividend cut.

**What formula does the Dividend Yield Calculator use?**
Dividend yield = annual dividend per share ÷ share price × 100.


## Sources

- [U.S. SEC – Investor.gov compound interest and investing basics](https://www.investor.gov/)