Dividend Calculator logodividendcalculator.app

Dividend Yield Calculator

Price and payout in, yield and income out

Stock and payout
Enter one dividend payment and how often it is paid.
$
$
Dividend yield
3.60%
Annual dividend per share
$1.80
Income per $10,000 invested
$360.00
Annual income
$180.00
Monthly average
$15.00
Position value
$5,000.00

How dividend yield works

Dividend yield is this year's dividends divided by today's share price. A company paying $0.45 a quarter on a $50 stock yields 3.6%: four payouts make $1.80 a year, and $1.80 is 3.6% of $50. The calculator does that arithmetic for any price, payout, and frequency, and shows what it means in dollars for the shares you hold.

Yield moves when either number moves. A falling share price raises the yield without the company paying a cent more, which is why a suddenly cheap stock can look suddenly generous. Check whether the yield rose because the dividend grew or because the price fell; only one of those is good news.

Trailing yield versus forward yield

Most quoted yields are trailing: the last twelve months of payouts over today's price. Forward yield annualizes the latest declared payout instead, and the two disagree whenever a dividend was raised or cut during the year. This calculator computes whichever you feed it. Enter the latest payout for a forward yield, or the past year's total as an annual payment for a trailing one.

When a high yield is a warning

  • Yields far above a fund's or sector's norm usually mean the market expects a cut. The price fell first; the yield math just hasn't caught up.
  • Payout ratio matters more than yield. A 4% yield covered twice over by earnings beats a 7% yield the company borrows to pay.
  • Covered-call and option-income funds quote double-digit 'yields' that are partly your own capital coming back. Distribution rate and dividend yield are not the same number.

Yield is a snapshot, not a return

A stock's yield today says nothing about what the income does next. A 2% yield growing 10% a year overtakes a static 6% yield in about a dozen years. That compounding is what the DRIP calculator on the home page models. Yield tells you where the income starts; growth decides where it ends up.

Common questions

What is a good dividend yield?

Between about 2% and 5% for individual stocks, as a rough rule. Under 2% the income barely registers; far above 5% you are usually being paid for risk: a shaky payout, a shrinking business, or return of your own capital. Broad index funds sat under 1.5% when I last checked, and quality dividend funds near 3.5%.

How do I calculate dividend yield from a quarterly payment?

Multiply the quarterly payout by four, then divide by the share price. $0.60 a quarter on an $80 stock is $2.40 a year, or a 3% yield. Enter the payout as quarterly above and the calculator annualizes it for you.

Does dividend yield change when the stock price changes?

Constantly. Yield is recalculated from the live price, so a 20% price drop turns a 3% yielder into a 3.75% yielder overnight with no change in the actual cash paid. Your income depends on the dividend per share and the shares you own rather than the quoted percentage.