Calculator
Dividend Yield Calculator
A high yield can signal either generous cash returns or a price that has fallen because the market doubts the dividend. Check payout coverage before treating yield as income.
Dividend yield is the annual cash dividend divided by the current share price. This calculator annualizes the most recent quarterly dividend, computes the current yield, estimates the annual income on a dollar amount invested, and shows yield on cost for shares bought at a different price. It uses the dividend the company has declared, not a forecast of future increases or cuts.
How this dividend yield calculator works
The model multiplies the latest quarterly dividend by four to get the indicated annual dividend, divides it by the share price for current yield, and divides it by your purchase price for yield on cost. Annual income is the dividend per share times the shares your investment buys at today's price.
Formula
Dividend yield = (quarterly dividend × 4) ÷ share price
Indicated yield uses a declared dividend, so it lags cuts, special dividends, and semi-annual or irregular payers. Companies that pay monthly or annually should be entered as the quarterly equivalent.
Before you use the result
Assumptions
- • The most recent quarterly dividend continues unchanged for a year.
- • Dividends are paid in cash and not reinvested.
- • Taxes, withholding, and brokerage fees are excluded.
Quick start
- 1. Enter the current share price and the last declared quarterly dividend.
- 2. Enter the dollar amount you plan to invest to see indicated annual income.
- 3. Enter your cost basis per share to compare current yield with yield on cost.
Frequently asked questions
How do you calculate dividend yield?
Divide the annual dividend per share by the current share price and multiply by 100. For a $3.00 annual dividend on a $100 share the yield is 3%.
What is a good dividend yield?
It depends on the sector and rates. Yields far above peers or above the 10-year Treasury often reflect a falling price and doubt about the payout rather than a bargain.
What is yield on cost?
Yield on cost divides the current annual dividend by the price you originally paid. It measures how the income stream has grown relative to your own investment, not what a new buyer would earn today.
Does dividend yield include special dividends?
Indicated yield excludes one-time special dividends. Trailing yield, which sums the last twelve months of actual payments, can include them and overstate the recurring rate.
More calculators
The math is easy. The macro is hard.
Dividend Yield Calculator shows the arithmetic. Members get the monthly call that decides which inputs matter, plus written breakpoints when the facts move. $15/month or $150/year.
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