Dividend Yield Calculator

Calculate dividend yield from the annual dividend and share price, and see your dividend income.

Calculator

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Example Result

Your result will appear here

The calculated result will appear here after you press Calculate.

Estimates for planning only; not financial, tax or investment advice. See our Disclaimer.

About the Dividend Yield Calculator

Dividend yield tells you how much cash a stock pays you each year for every dollar of its current price. It is the annual dividend per share divided by the share price: a $2.40 dividend on an $80 share is a 3% yield, so $10,000 invested at that price would pay about $300 a year if the dividend stays the same. Because it is a percentage, yield lets you compare the income from a $15 stock and a $400 stock, or from a stock and a savings account. But yield moves every time the price moves, and a high number can mean a share price has fallen because the market expects the dividend to be cut. Enter the number of shares you own to see your annual and monthly dividend income as well.

How to Use the Dividend Yield Calculator

  1. 1

    Enter the annual dividend per share (a quarterly dividend × 4, a monthly dividend × 12).

  2. 2

    Enter the current share price — or your purchase price to get your yield on cost.

  3. 3

    Optionally enter the number of shares you own to see your annual and monthly dividend income, then press Calculate.

Dividend Yield Calculator Examples

By O.E. — Partner, chairman of the board and CEO of a metal products manufacturer for 21 years; the company exports to 45 countries.

Drafted with AI assistance; calculations checked against primary sources and tested with the site's own code. About FlowUtil

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How Dividend Yield Is Calculated

Dividend yield = annual dividend per share ÷ share price × 100. A quarterly payer's annual dividend is the quarterly amount × 4; a monthly payer's is the monthly amount × 12.

The Monthly Dividend per Share line is the annual dividend ÷ 12 — an average, since most companies pay quarterly. If you enter the number of shares you own, the calculator also shows your annual dividend income (shares × annual dividend) and its monthly average.

Enter today's price for the current yield, or the price you paid for your yield on cost.

SymbolMeaning
Annual dividendRegular dividends for one year per share, in dollars
Share priceCurrent market price (current yield) or your purchase price (yield on cost)
SharesOptional: number of shares you own
Yield %Annual dividend ÷ price × 100
IncomeShares × annual dividend (÷ 12 for the monthly average)

Yield on Real Share Prices

  1. 1A steady payer: $0.60 a quarter ($2.40 a year), share price $80, 500 shares.

    2.40 ÷ 80 × 100; 500 × 2.40

    Dividend Yield = 3.00% · Monthly Dividend per Share = $0.20 · Annual Income = $1,200.00 ($100.00 a month)

    The high-yield trap: if the price falls to $60 and the company keeps the $2.40 dividend, the yield shows 4.00%. Nothing improved — the yield rose only because the price fell, often because investors doubt the dividend will last.

  2. 2Current yield vs yield on cost: bought at $52, now pays $0.52 a quarter ($2.08 a year) and trades at $95.40.

    Current: 2.08 ÷ 95.40 × 100; on cost: 2.08 ÷ 52 × 100

    Current Yield = 2.18% · Yield on Cost = 4.00%

    Yield on cost rises as a company grows its dividend, but it says nothing about whether the stock is a good buy today — a new buyer gets 2.18%.

Which Dividend Figure to Use

  • Trailing or forward?Trailing yield uses dividends paid in the last 12 months; forward yield annualizes the latest declared dividend. Use the same type when comparing stocks.
  • Leave out special dividendsOne-time payouts inflate the yield for one year only.
  • Same currencyAn ADR's dollar price with a dividend in local currency gives a wrong yield.
  • Funds and ETFsCheck which yield is quoted (see below); for your own income, use the distributions you received over the last year.
  • Before taxUS dividends are taxed as ordinary income or, if qualified, at lower capital-gain rates.

Fund Yields: Distribution Yield vs SEC Yield

Distribution yield is a fund's recent distributions, annualized, divided by its price or NAV — the fund equivalent of dividend yield, which can include distributions that are not recurring income.

The 30-day SEC yield is a standardized figure that US mutual funds and ETFs calculate the same way: the income the fund earned in the last 30 days, minus its expenses, expressed as an annual rate. Because it is net of expenses and calculated identically by every fund, it is the better figure for comparing bond funds. The two can differ noticeably when interest rates change or a fund pays out capital gains.

What a High or Low Yield Signals

Is the dividend covered? The payout ratio (dividends ÷ earnings per share) shows how much of profit is paid out: a company earning $4.00 a share and paying $2.08 pays out 52%. One paying more than it earns cannot sustain that for long.

Yield is not total return: a 3% yield on a stock whose price falls 10% is a loss. Measure price plus dividends with the ETF Return Calculator, which works for individual stocks too.

Yield changes daily: the dividend is fixed until the company changes it; the price is not. Recalculate whenever you compare.

What a Yield Figure Leaves Out

  • InputsAnnual dividend 0 or more; share price greater than 0; number of shares optional, greater than 0.
  • A snapshotAssumes the dividend you entered continues; companies can raise, cut or suspend dividends at any time.
  • Monthly figures are averagesMost companies pay quarterly, so payments arrive as larger, less frequent amounts.
  • Pre-taxIgnores foreign withholding tax on non-US stocks. Not investment or tax advice.

Yield Traps

  • Quarterly entered as annual0.60 instead of 2.40 gives 0.75% instead of 3%.
  • Chasing a very high yieldCheck why the price fell before treating it as a bargain.
  • Including special dividendsUse the regular dividend for a representative yield.
  • Quoting yield on cost as current yieldYield on cost describes your purchase, not today's opportunity.
  • Comparing different fund yieldsOne fund's distribution yield against another's SEC yield.

Sources

Frequently Asked Questions

How do you calculate dividend yield?

Divide the annual dividend per share by the current share price and multiply by 100. $2.40 ÷ $80 = 3%.

What is a good dividend yield?

It depends on the sector and on interest rates. Utilities and real estate trusts usually yield more than technology companies, which often pay little or nothing. A yield far above a company's own history or its peers is a warning sign worth investigating.

How much income will I get?

Multiply your number of shares by the annual dividend per share: 500 shares × $2.40 = $1,200 a year, or $100 a month on average. Enter your shares in the optional field to see this.

What is yield on cost?

The annual dividend divided by the price you paid. A $2.08 dividend on shares bought at $52 is a 4% yield on cost, even if the current yield is 2.18%.

What is the difference between trailing and forward yield?

Trailing yield uses dividends paid in the last 12 months; forward yield annualizes the latest declared dividend.

What is distribution yield?

For funds and ETFs, the recent distributions annualized and divided by the fund's price. The standardized 30-day SEC yield, which is net of expenses, is better for comparing funds.

Why might a very high yield be a warning sign?

Yield rises when the price falls. A sudden jump in yield often means the market expects the dividend to be cut.

Are dividends taxed?

In the US, yes: as ordinary income, or at lower capital-gain rates if they are qualified dividends. Your Form 1099-DIV shows which.