💹 Dividend Yield Calculator
Find a stock’s dividend yield from its price and dividend, and the income your shares will pay each year.
Quick answer: Dividend yield = annual dividend per share ÷ share price × 100. A $50 stock paying $0.50 a quarter ($2.00 a year) yields 4.00%, so 100 shares earn $200.00 a year.
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Dividend Yield Calculator inputs
Result
Dividend yield
4%
$2.00 a year per share on a $50.00 share price
| Investment (100 shares) | $5,000.00 |
| Quarterly payment | $50.00 |
| Annual dividend income | $200.00 |
- Monthly average
- $16.67
- 10 years (no growth, not reinvested)
- $2,000.00
How to calculate dividend yield
Dividend yield shows how much cash income a share pays each year relative to its price – a quick way to compare income stocks with each other and with savings or bond rates.
Annual dividend = Dividend per payment × Payments per year · Yield = Annual dividend ÷ Share price × 100 · Income = Annual dividend × Shares
Example: a company pays $0.50 per share every quarter and trades at $50. Annual dividend = $2.00, yield = 2 ÷ 50 = 4.00%. Owning 100 shares ($5,000 invested) brings in $200.00 a year, or $50.00 a quarter.
Payment frequencies
| Frequency | Payments a year | Common for |
|---|---|---|
| Quarterly | 4 | Most US companies |
| Semi-annual | 2 | Many UK, European and Asian companies |
| Monthly | 12 | Some REITs, income funds and ETFs |
| Annual | 1 | Some European and emerging-market companies |
Look beyond the yield
- Payout ratio: dividends ÷ earnings. Ratios above about 80% leave little room for error, except for REITs and utilities, which are structured to pay out more.
- Dividend growth: a 2.5% yield growing 8% a year can overtake a static 4% yield within a decade.
- Total return: price changes matter as much as income – a high yield on a falling share can still lose money.
- Reinvestment: reinvesting dividends compounds returns; the income shown here assumes payouts are taken as cash.
Yield on cost
Long-term holders often track yield on cost: the current annual dividend divided by the price they originally paid. If you bought at $40 and the dividend has grown to $2.40, your yield on cost is 6%, even though a new buyer at $60 would receive 4%.
Estimates for educational purposes, not financial or tax advice.
Frequently asked questions
What is a good dividend yield?
Many mature, dividend-paying companies yield 2–5%. A yield far above the market average can signal that the share price has fallen because investors expect the dividend to be cut, so check that earnings cover the payout.
Why does dividend yield change every day?
Yield is the dividend divided by the current price. When the share price rises, the yield falls even if the dividend stays the same, and vice versa.
What is the difference between trailing and forward yield?
Trailing yield uses dividends actually paid over the last 12 months; forward yield annualises the most recent or announced dividend. Entering the latest quarterly dividend here gives a forward yield.
Are dividends taxed?
Usually, yes. In the US, qualified dividends are taxed at lower long-term capital-gains rates; other countries have their own allowances and withholding rules. Dividends held in tax-advantaged accounts may be sheltered.