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Dividend Yield Calculator

Find the dividend yield of a share.

How it is calculated

The yield is the yearly cash paid per share as a share of the price: Yield % = (Dividend per share / Share price) × 100. Both amounts must be in the same currency, and the dividend should be the total for 12 months, not a single payment. The price must be greater than zero. The result is rounded to two decimals. It shows income only; it says nothing about price gains or losses, taxes or withholding, and it is based on today's price, so it changes every time the price moves.

Worked example

A stock pays 0.60 per quarter, which is 2.40 per year, and trades at 60. Divide: 2.40 / 60 = 0.04. Multiply by 100 and the dividend yield is 4.00%. If the price fell to 48 with the same dividend, the yield would rise to 5.00%, even though the investor's holding is worth less.

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Common mistakes

  • Entering one quarterly payment as the annual dividend, which understates the yield by three quarters.
  • Using the purchase price instead of today's price when you want the current market yield (yield on cost is a different figure).
  • Treating a very high yield as a bargain; it often reflects a collapsed price or a dividend that may be cut.
  • Mixing currencies, such as a dividend in USD against a price in local currency.
  • Forgetting dividend tax, which lowers what you actually keep.

Sources

About this calculator

This calculator divides a stock's annual dividend per share by its current share price and multiplies by 100 to get the dividend yield — the percentage return an investor gets from dividends alone, independent of any price appreciation.

Income-focused investors use it to compare dividend-paying stocks against each other or against bond yields, and it's a key input when screening for "dividend growth" or "high-yield" stocks, though an unusually high yield can sometimes signal a falling share price rather than a great deal.

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Comments (1)

  • Editorial team

    The yield is only as meaningful as the dividend you feed it. Use the total paid over twelve months, or the declared annual rate, and say which one you chose when comparing stocks. A very high figure is not automatically a bargain: it can appear because the price has dropped sharply or because the payout may be cut. It also says nothing about price growth or tax on the dividend. Which dividend figure do you usually use, trailing or forecast?

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