Dividend Yield Calculator
A share's dividend yield at today's price, your yield on cost, and the payout ratio, from the dividend per payment, how often it is paid, the price and earnings per share.
Result…
How it's calculated
Dividend per share a year = dividend per payment × payments a year Dividend yield = yearly dividend ÷ share price Yield on cost = yearly dividend ÷ your cost per share Payout ratio = yearly dividend ÷ earnings per share Earnings yield = earnings per share ÷ share price
The dividend yield is a year's dividends per share as a share of the price: a stock at 80 paying 0.50 four times a year yields 2.5%. Because the price moves every day and the dividend changes less often, the yield rises when the price falls and falls when it rises. Yield on cost compares the same dividend with what you paid, so it shows the income return on your own money and grows when the dividend is raised. The payout ratio is the share of earnings paid out: a low one leaves room to keep paying in a bad year, while one over 100% means the dividend is larger than the profit. Companies pay yearly, twice a year, quarterly or monthly depending on where they are listed, so enter the payment and how often it comes.
Your numbers, step by step
About the Dividend Yield calculator
This dividend yield calculator turns a dividend per payment into the yearly yield on a share. Enter the dividend each time it is paid and how often it comes (yearly, twice a year, quarterly or monthly), plus the share price, and it gives the dividend per share a year and the dividend yield. Add what you paid per share for your yield on cost, the earnings per share for the payout ratio and earnings yield, and the number of shares you hold for your yearly income. Income investors use it to compare shares and funds, and to see how much of a company's profit goes out as dividends. Each step is shown with your numbers. The yield uses the dividend you enter as if it were paid for a full year. To see what reinvesting the dividends could do over time, use the dividend reinvestment calculator.
How to use it
- Enter the “Dividend per payment” and choose how many “Payments a year”.
- Enter the “Share price”.
- Optionally add “Your cost per share”, the “Earnings per share” and the “Shares held”.
- Read the dividend yield, yield on cost, payout ratio and your yearly dividend income.
Worked example
A share priced at 95 pays 0.62 four times a year, so the dividend is 2.48 a year and the yield is 2.48 ÷ 95 = 2.61%. Bought at 70, the yield on cost is 3.54%. With earnings of 5.20 per share, the payout ratio is 47.7% and the earnings yield 5.47%. Holding 150 shares, worth 14,250, brings in 372 a year before any tax.
Updated
Questions people ask
How do I calculate dividend yield?
Add up the dividends per share for a year, for example a quarterly dividend times four, and divide by the current share price. Multiply by 100 for a percentage.
What is yield on cost?
It is the yearly dividend divided by the price you paid per share rather than today's price. It shows the income return on your own money and rises when the company raises its dividend.
What does a payout ratio over 100% mean?
The company is paying out more in dividends than it earns per share. It can do that for a while from cash or borrowing, but not for ever, so such a dividend is more at risk of a cut.
Why did the dividend yield go up when the share price fell?
The yield divides a fixed dividend by the price, so a lower price gives a higher yield. A very high yield can be a sign the market expects the dividend to be cut, so check the payout ratio too.
Is a higher dividend yield always better?
No. A yield says nothing about whether the dividend can last, how the share price will move or the tax you pay, which depends on your country and account. This is information, not advice; a qualified financial adviser can help with your own choices.