Dividend Yield Calculator

Dividend Yield

4%

The Numbers

  • Total annual dividend income: $200.00

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Disclaimer

This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.

How This Calculator Works

Dividend yield is a stock’s annual dividend per share divided by its current share price, expressed as a percentage. Enter the annual dividend per share and the current share price, and this calculator shows the yield — plus, if you enter how many shares you own, your total annual dividend income.

Yield is what makes dividend income comparable across stocks with very different prices — a $1 dividend means something very different on a $20 stock than on a $200 one, and yield is what captures that difference in one number.

The Formula

Dividend Yield=Annual Dividend Per ShareShare Price×100\text{Dividend Yield} = \frac{\vA{\text{Annual Dividend Per Share}}}{\vB{\text{Share Price}}} \times 100 Total Annual Income=Annual Dividend Per Share×Shares Owned\text{Total Annual Income} = \vA{\text{Annual Dividend Per Share}} \times \vC{\text{Shares Owned}}

Worked Example

A stock paying $2 per share annually, priced at $50, with 100 shares owned:

  1. Dividend yield: 2÷50×100=4%\vA{2} \div \vB{50} \times 100 = 4\%.
  2. Total annual income: 2×100=$200\vA{2} \times \vC{100} = \$200.

Source: Wikipedia: Dividend Yield.

Frequently Asked Questions

What is dividend yield?

Dividend yield is a stock's annual dividend per share divided by its current share price, expressed as a percentage. It's the standard way to compare how much income a stock pays out relative to its price, regardless of the company's size or share price.

What is a good dividend yield?

There's no single universal target — yields vary a lot by sector and company strategy. An unusually high yield can sometimes signal a falling share price (which mechanically raises the yield) or an unsustainable payout, rather than simply being a better deal, so it's worth looking at the company's overall financial health, not just the yield number alone.

Does dividend yield include dividend growth or reinvestment?

No — this is a snapshot based on the current annual dividend rate and current share price. It doesn't project how the dividend or share price might change over time, or model the effect of reinvesting dividends to buy more shares.