Dividend Yield Calculator

Calculate the dividend yield and expected annual income for any stock position. Compare income across different holdings based on current price and dividend.

Formula

Dividend yield formula

Dividend Yield Annual Dividend Per Share ÷ Price Per Share × 100
Annual Income Annual Dividend Per Share × Shares

Enter the full-year dividend. If dividends are paid quarterly, multiply the quarterly dividend by 4 first.

Worked Example

Given

Annual dividend $2.50 per share · Price $50 · 200 shares

Dividend Yield
$2.50 ÷ $50 × 100 = 5.00%
Annual Income
$2.50 × 200 = $500

Frequently Asked Questions

What is dividend yield?
Dividend yield is the annual dividend per share divided by the current price per share, expressed as a percentage. A $2.50 annual dividend on a $50 stock gives a 5% yield. Yield rises when the price falls (even if the dividend stays constant) and falls when the price rises, which is why chasing high yields can signal a troubled company.
Is a higher dividend yield always better?
Not necessarily. Unusually high yields (above 8–10%) can indicate that the market expects the dividend to be cut. A sustainable yield from a quality company is worth more than a temporarily high yield from one under financial stress. Always check the dividend payout ratio alongside yield.
Does this calculate after-tax income?
No. The income shown is gross (pre-tax). Dividend income is taxed differently across jurisdictions — some countries withhold tax at source, others tax it at your marginal income rate, and some offer lower qualified dividend rates. Consult a tax adviser for your after-tax income estimate.
What is the difference between dividend yield and dividend growth rate?
Yield measures the current income relative to price. Growth rate measures how fast the dividend increases each year. A stock with a 2% yield and 10% annual growth will eventually yield far more on your original cost basis than a static 5% yielder — use the DRIP calculator to model this compounding effect.