Dividend Yield Calculator

Calculate the dividend yield of any stock based on price and dividend payment.

Calculate Dividend Yield

Current market price per share
Total yearly dividend per share
Or enter quarterly dividend
Dividend per quarter (×4 for annual)
Number of shares you own
Dividend Yield4.00%
Your Annual Income$600
Your Quarterly Income$150
Position Value$15,000
Phin Smith
CREATED BY Phin Smith UPDATED
Based on 3 sources
Reviewed by Expert
836 people found this helpful

Table of Contents

How to Use This Calculator

This calculator determines the dividend yield percentage and your income based on stock price and dividend payments.

  1. Enter the stock price - The current market price per share.
  2. Enter the annual dividend - Total dividends paid per share per year. You can also enter quarterly dividend instead.
  3. Enter shares owned - How many shares you hold to see your personal income.
  4. View your yield - See the dividend yield percentage and your expected income.

Dividend Yield Formula

Dividend Yield = (Annual Dividend ÷ Stock Price) × 100

Example: A stock priced at $150 paying $6 annual dividend:

  • Dividend Yield = ($6 ÷ $150) × 100 = 4.00%
  • If you own 100 shares: $6 × 100 = $600/year

Understanding Dividend Yield

Dividend yield is a financial ratio showing how much a company pays in dividends relative to its stock price. It's expressed as a percentage and helps investors compare income potential across different stocks.

What's a Good Dividend Yield?

The S&P 500 average yield is around 1.3-1.5%. Quality dividend stocks typically yield 2-4%. Yields above 6% may indicate higher risk or a declining stock price, so always investigate further.

Yield vs. Total Return

Remember that yield is only part of the picture. Total return includes both dividends and capital appreciation. A lower-yield stock with strong growth potential may outperform a high-yield stock with no growth.

Frequently Asked Questions

Why does dividend yield change daily?

Dividend yield fluctuates with stock price. If the stock price rises, the yield decreases (same dividend, higher price). If the price falls, the yield increases. The actual dividend payment remains the same until the company announces a change.

Forward yield vs. trailing yield - what's the difference?

Trailing yield uses the last 12 months of actual dividends paid. Forward yield uses expected future dividends. Our calculator uses the dividend you enter, which can represent either depending on your input.

Is a higher yield always better?

Not necessarily. Very high yields (8%+) often signal problems - the stock price may have crashed or the dividend may soon be cut. Look for sustainable yields from profitable companies with history of dividend growth.

Where do I find dividend information for a stock?

Check the company's investor relations page, financial websites like Yahoo Finance, or your brokerage. Look for "dividend per share" or "annual dividend" in the stock's key statistics.

Sources

This calculator is based on the following authoritative sources:

  1. Investopedia - Dividend Yield Definition

    Comprehensive guide to understanding dividend yield calculation and evaluation.

  2. SEC - Investor Bulletin: Dividend Payments

    Securities and Exchange Commission guidance on how dividends work.

  3. Fidelity - Why Dividends Matter

    Educational resource on dividend investing and yield analysis.