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
| Field | What to enter |
|---|---|
| Annual dividend per share | Amount in your currency |
| Share price | Amount in your currency |
| Shares owned | A number |
| Your purchase price per share | Amount 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 share | Dividend yield (%) |
|---|---|
| 1.2 | 2 |
| 1.8 | 3 |
| 2.4 | 4 |
| 3 | 5 |
| 3.6 | 6 |
| 4.8 | 8 |
Formula
Dividend yield = annual dividend per share ÷ share price × 100Annual income = dividend per share × sharesYield on cost = annual dividend ÷ purchase priceWorked 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 %.
Frequently asked questions
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.