Investing
Dividend Yield Calculator
Calculate dividend yield from stock price and annual dividend per share, plus estimated dividend income from an investment amount.
What does this calculator answer?
Dividend yield is annual dividend per share divided by the current share price. A high yield can be attractive, but it can also reflect a falling share price or payout risk.
Inputs
Results
Dividend yield
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Estimated shares
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Estimated annual dividend
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Formula
Dividend yield = annual dividend per share ÷ current share price × 100
Example
A $50 stock with a $2 annual dividend has a 4% dividend yield. A $1,000 investment buys about 20 shares and would estimate $40 in annual dividends before tax.
Common mistakes
- Assuming a high yield is automatically safe
- Ignoring dividend cuts
- Forgetting tax effects on income
Important note
Yield is a snapshot from current inputs. It does not forecast future dividends or share prices.
Frequently Asked Questions
If the dividend stays the same while price falls, the dividend divided by price becomes larger.
No. It estimates pre-tax dividend income.
Yes, if you use annual distribution per share and current fund price.