Dividend Yield Calculator
Dividend yield estimates how much dividend income a stock pays relative to its current price. It’s a useful learning metric, but it can change if prices or dividends change.
Dividend yield = annual dividend ÷ share price. Assumes the dividend stays the same and ignores taxes and price changes.
Dividend Yield FAQs
What is dividend yield?
Dividend yield is the annual dividend amount divided by the current share price. It can change as dividends or prices change.
How is the annual dividend calculated?
Dividend per payment × payments per year (monthly, quarterly, semi-annual, annual).
Does a higher yield mean a better investment?
Not necessarily. A very high yield can happen because price fell or the dividend may be at risk.
What does this ignore?
It ignores taxes, dividend growth/cuts, reinvestment, and price changes.
Yield vs payout ratio?
Yield compares dividends to price. Payout ratio compares dividends to earnings/cash flow.
Educational use only. Assumes dividend stays the same and ignores taxes.