Dividend Yield on Cost Calculator
Enter the annual dividend per share and what you originally paid to see your true yield on cost.
Result
How it is calculated
The tool compares today's dividend with the price you originally paid, both per share: yield on cost % = annual dividend per share / original purchase price per share × 100. With a share count it also shows annual income = dividend × shares and cost basis = purchase price × shares. Use the current total dividend over the year (for example four quarterly payments added up), not a single payment. The shares field is optional: if it is left empty the tool assumes one share. The purchase price must be above zero and the dividend cannot be negative. A stock split changes the price per share, so after a split use the split-adjusted purchase price. Taxes and the current market price are not part of the calculation.
Worked example
You own 200 shares bought at 45 each, and the company now pays 3.60 per share per year. Step 1: yield on cost = 3.60 / 45 = 0.08, or 8.00%. Step 2: annual income = 3.60 × 200 = $720.00. Step 3: your cost basis = 45 × 200 = $9,000.00. Check: 720 / 9,000 = 8.00%. If the stock now trades at 90, its current yield would be only 4 %, but your yield on cost stays at 8 % because the denominator is what you paid.
Common mistakes
- Using the current share price instead of the price you paid. That gives the current dividend yield, not the yield on cost.
- Entering a quarterly dividend as if it were annual. A 0.90 quarterly payment is 3.60 per year, and 0.90 would show 2 % instead of 8 %.
- Ignoring stock splits. After a 2-for-1 split, both the old price and the old dividend must be halved, or the yield on cost will not be comparable.
- Averaging in later purchases wrongly. If you bought more shares at a higher price, enter the average cost per share, not the first or the latest price.
- Treating a high yield on cost as a reason to hold or buy more. It only reflects your past price; it says nothing about the yield a new buyer gets today.
Sources
- Defining the Value of an Investment — FINRA Investor Insights
About this calculator
Yield on cost (YOC) measures a dividend against what you originally paid for the shares, not against today’s market price — the formula is YOC = current annual dividend per share / original purchase price per share. Because it uses your fixed cost basis as the denominator, YOC only grows over time as a company raises its dividend, and can end up dramatically higher than the stock’s current dividend yield for long-held positions in companies with a strong dividend-growth track record.
Dividend growth investors track YOC specifically to see the payoff of buying and holding through years of dividend increases — a stock bought at a modest 2% yield a decade ago can easily be paying a 6–8% yield on the original cost today if the company has compounded its payout, which is the whole thesis behind a “buy and hold forever” dividend growth strategy. It’s a personal, cost-basis-specific number, unlike the current yield that shows on a stock screener, which reflects only today’s price.
Divide today's annual dividend per share by the price you originally paid, and you see the yield your original investment now earns.
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