Dividend Yield Calculator
Calculate dividend yield from annual dividend per share and share price, with income per holding, the payout trap and a worked $2.40 on $60 example.
Results · USD
Dividend yield
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Educational estimates · not financial advice · free, no signup
How this was calculated
Dividend yield = annual dividend per share ÷ share price × 100. Annual income = shares × annual dividend per share. Price needed for a target yield = dividend ÷ target yield.
Want more detail? Full formula notes & FAQs ↓
Detailed guide
What it is, how to use it, how to read the numbers, common mistakes, a worked example, formulas, and FAQs.
What this calculator is
Dividend yield tells you how much a company pays in dividends each year relative to its share price. A $60 stock paying $2.40 a year yields 4%. It is a common measure for income investors comparing stocks, funds and other income sources. Yield moves with price: if the price falls and the dividend stays the same, the yield rises, which can make a troubled company look attractive. A very high yield can signal a market expectation that the dividend will be cut. Look at earnings, cash flow and payout ratio, and use annual, not quarterly, dividends.
When to use / who it helps
- You are comparing income from different stocks.
- You want to know the income from a holding.
- You want to see the effect of a price change on yield.
- You are checking a fund fact sheet.
- You want a target price for a desired yield.
How to use
Steps
- Enter the annual dividend per share.
- Enter the current share price.
- Read the dividend yield.
- Multiply by the number of shares for income.
- Check that you used annual, not quarterly, dividends.
- Compare with the company's payout ratio and history.
How to interpret results
- A higher yield means more income per dollar invested.
- Yield changes when the price changes.
- Very high yields can be a warning sign.
- Dividends are not guaranteed.
- Total return includes price changes as well as dividends.
Common mistakes & gotchas
- Using a quarterly dividend as the annual dividend.
- Chasing the highest yield without checking sustainability.
- Ignoring taxes on dividends.
- Forgetting that yield is not total return.
- Comparing yields across very different sectors.
Worked example
Worked example — $2.40 annual dividend and a $60 share price
- Yield = 2.40 ÷ 60 = 0.04, which is 4%.
- Income from 100 shares = 100 × 2.40 = $240 a year.
- If the price falls to $48 with the same dividend, yield = 2.40 ÷ 48 = 5%.
- A quarterly dividend of $0.60 times 4 gives the same $2.40 annual figure.
Result: A $2.40 annual dividend on a $60 share price is a 4% yield.
To load the form's own demo values, tap Try example above the Calculate button.
How to calculate / formula
Dividend yield = annual dividend per share ÷ share price × 100. Annual income = shares × annual dividend per share. Price needed for a target yield = dividend ÷ target yield.
Frequently asked questions
What is a good dividend yield?
It depends on the sector and risk; a very high yield can signal trouble.
Why does yield rise when the price falls?
The dividend stays the same while the denominator shrinks.
Are dividends guaranteed?
No. Companies can cut or suspend them.
How do I use quarterly dividends?
Multiply by four.
Is yield the same as total return?
No. Total return includes price changes.
Is this investment advice?
No. It is an educational calculation.