Dividend Yield Calculator
By Santaji GadepatilinUpdated October 27, 2026
Dividend yield is the annual dividend as a percentage of the share price. It shows how much income a stock pays relative to its cost.
How to use the dividend yield calculator
Enter the annual dividend per share and the share price to get the yield. Add the amount invested to see your yearly dividend income. You can also find the price at which a stock would reach a target yield.
Dividend yield formulas
Yield = Annual dividend ÷ Price
Income = Amount invested × Yield
Worked example
A share pays 0.60 per quarter (2.40 a year) and trades at 60:
- Yield = 2.40 ÷ 60 = 4%
- 10,000 invested earns about 400 a year in dividends
Yield on cost
If you bought at 40 and the dividend is now 2.40, your yield on cost is 6% — even though new buyers at 60 get 4%. Enter your purchase price to see it.
Income from 100,000 invested
| Dividend yield | Yearly income | Per month |
|---|---|---|
| 2% | 2,000 | 166.67 |
| 3% | 3,000 | 250.00 |
| 4% | 4,000 | 333.33 |
| 5% | 5,000 | 416.67 |
| 6% | 6,000 | 500.00 |
Typical yields by sector
| Sector | Usual yield range |
|---|---|
| Technology, growth stocks | 0–1.5% |
| Consumer goods | 1–3% |
| Banks and financials | 2–5% |
| Utilities, energy, REITs | 3–7% |
Ranges change with markets. A yield far above its sector often means the share price has fallen because the market expects a dividend cut.
Payout ratio
The payout ratio shows how much of the profit is paid out:
Payout ratio = Dividend per share ÷ Earnings per share
A ratio of 30–60% is usually sustainable. Above 80–100% the company is paying more than it earns, which cannot last.
Dividend growth
A lower yield that grows every year can beat a high flat yield over time. A 2% yield growing 10% a year pays more than a flat 4% yield after about 8 years, and the share price usually rises with the dividend.
Tax on dividends
Dividends are usually taxable as income in the year you receive them. Rates and allowances differ by country, so check local rules before comparing yields with tax-free options.
Things to check
- Payout ratio — the share of profits paid as dividends. Very high ratios may not be sustainable.
- Dividend history — consistent growth is a good sign.
- Taxes — dividends are often taxed, and foreign shares may have withholding tax.
Frequently asked questions
What is dividend yield?
The annual dividend divided by the share price. A stock paying 2.40 a year at a price of 60 yields 4%.
Is a high yield always good?
Not necessarily. A very high yield can mean the price has fallen because investors expect the dividend to be cut.
How do I use quarterly dividends?
Multiply the quarterly dividend by 4 to get the annual dividend before entering it.
What is forward vs trailing dividend yield?
Trailing yield uses dividends paid over the last 12 months. Forward yield uses the expected dividends for the next 12 months. Use the same type when comparing shares.
Why did my dividend yield change when the dividend did not?
Because yield is dividend ÷ price. When the share price rises the yield falls, and when the price falls the yield rises.