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Dividend Yield Calculator

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Dividend Yield Calculator

Find out exactly how much cash income a stock pays you every year, just for holding it — separate from whether the share price goes up or down.

Optional — project yield on cost forward
Dividend yield 0%
Annual dividend / share
$0
Total annual income
—
Per payment received
—
How this yield compares
This stock0%
S&P 500 average~1.5%
Typical quality dividend stock2–4%
High-yield / higher-risk territory6%+
Yield on cost over time, if dividends keep growing
Yield on your original purchase price

What dividend yield actually tells you

Dividend yield is simply the cash a company pays you every year, shown as a percentage of what the stock costs today. It’s one of two ways stocks make you money — the other being the share price itself going up. Yield is the “cash in your pocket” part, completely separate from whether the stock’s price rises or falls.

Think of it like a rental property. If you buy a $200,000 apartment and it brings in $10,000 a year in rent, that’s a 5% rental yield — regardless of whether the apartment itself becomes worth more or less over time. A stock’s dividend yield works exactly the same way: it’s the “rent” the company pays you just for owning a piece of it.
Dividend Yield = Annual dividend per shareCurrent share price × 100
If a company pays $0.50 per quarter, its annual dividend per share is $0.50 × 4 = $2.00. Divide that by the share price to get the yield.
Worked example: imagine a grocery chain trading at $80 a share, paying $0.50 every quarter. That’s $2.00 a year per share ($0.50 × 4). Divide $2.00 by $80, multiply by 100, and you get a 2.5% dividend yield. Own 100 shares, and that’s $200 a year in cash, paid to you regardless of what the stock price does.

Why the same stock’s yield changes even when the dividend doesn’t

This trips a lot of people up: dividend yield moves even if the company never changes its dividend payment at all, because it’s a ratio against the share price. If that grocery chain’s stock falls from $80 to $60 while the dividend stays at $2.00 a year, the yield “increases” to about 3.3% — not because the company got more generous, but because the stock got cheaper. That’s also why a sudden, unusually high yield can be a red flag rather than a bargain — it often means the stock price has been falling for a reason.

Watch out for dividend traps. A very high yield (roughly 8% or more) can mean a company is in trouble and its stock has dropped sharply, or that the dividend itself is at risk of being cut. Before trusting a high yield, check the payout ratio — the share of profit being paid out as dividends. A payout ratio above 80–90% often means the dividend isn’t sustainable for long.

Frequently asked questions

Is a higher dividend yield always better?

No. A very high yield often signals risk — either the stock price has fallen sharply, or the dividend itself may be at risk of being cut. Moderate, well-covered yields from financially healthy companies are usually more reliable than the highest number you can find.

What’s the difference between yield and total return?

Dividend yield only measures the cash income portion. Total return adds in any change in the share price itself. A stock with a low yield can still deliver a strong total return if its price grows significantly.

What’s “yield on cost”?

It’s your dividend yield calculated against the price you originally paid, not today’s price. If a company keeps raising its dividend, your yield on cost can climb well above the “current” yield new buyers see — the projection above estimates this for you.

Do all stocks pay dividends?

No. Younger, fast-growing companies often pay no dividend at all, choosing to reinvest profits back into the business instead. Dividends are more common among established, mature companies with steadier profits.

Want to see how this income could grow if reinvested?

Try the Investment Growth Calculator next.

Investment Growth Calculator Back to Toolkit