Dividend Yield Calculator
Calculate a stock’s dividend yield from its annual dividend and share price, plus the income your shares would produce.
How it works
Dividend yield = annual dividend per share ÷ share price · Annual income = shares × dividend
Dividend yield is the annual dividend expressed as a percentage of the current share price — it tells you the cash return a stock pays relative to its cost. A higher yield means more income per dollar invested, but an unusually high yield can also signal a falling share price or a dividend at risk of being cut. Multiply the per-share dividend by the number of shares you own to see your total income.
Worked example
A stock paying $2.50 a year at a $50 share price yields 5.00%. Owning 100 shares would generate about $250 a year in dividends — roughly $62.50 each quarter — on a $5,000 position.
Frequently asked questions
What is a good dividend yield?
Broad-market stocks often yield 1.5%–3%, while utilities, REITs and some established firms pay more. Yields above roughly 6%–8% deserve scrutiny — they can reflect a depressed share price or a payout the company may not sustain.
Is a higher yield always better?
No. Yield rises when the price falls, so a high number can flag trouble. Look at whether earnings comfortably cover the dividend (the payout ratio) and whether the company has a history of maintaining or raising it.
What is yield on cost?
It divides the current dividend by the price you originally paid, not today’s price. If a company keeps raising its dividend, your yield on cost climbs over time even as the market yield stays steady.
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This is an educational estimate, not financial or tax advice. Confirm figures with a professional.