Dividend Yield Calculator
Find a stock's dividend yield from price and payout.
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How it works
The dividend yield shown here is the annual dividend a stock pays expressed as a percentage of its current share price, which tells you how much cash income each dollar invested returns per year. It matters because yield lets you compare the income from very different stocks on equal footing, and it is a core metric for income-focused investors who rely on dividends for cash flow rather than share-price gains alone. This dividend yield calculator divides the annual dividend per share by the current price and multiplies by 100. Because price sits in the denominator, yield moves inversely to price: when a stock's price falls, its yield rises, and vice versa, which is why a sudden spike in yield can signal a dropping share price rather than a genuinely better deal. Investors use dividend yield to screen income stocks, to compare a stock's payout against bonds or savings rates, and to gauge whether a dividend looks sustainable. A very high yield deserves scrutiny, since it can reflect a falling price that anticipates a dividend cut. Remember that yield captures only the income return; total return also includes any change in the share price, and dividends can be raised, cut or suspended by the company at any time, so a current yield is a snapshot rather than a guarantee.
Dividend yield = annual dividend per share ÷ share price × 100
The annual dividend per share is the total cash a company expects to pay on one share over a year, and the share price is what one share currently costs. Dividing the dividend by the price gives the income return per dollar invested, and multiplying by 100 turns that ratio into a percentage. Because the price is in the denominator, a rising price lowers the yield while a falling price raises it, so yield and price always move in opposite directions for a fixed dividend.
Source:U.S. SEC — Investor.gov
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Worked example
How to use this calculator
- 1
Enter your values
Enter annual dividend per share and current share price.
- 2
Adjust the options
Fine-tune any options to match your situation.
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Read your result
Dividend yield updates instantly as you type — no button to press.
Frequently asked questions
What is a good dividend yield?
There is no single right number; it depends on the sector, the company's maturity and prevailing interest rates. Established, slower-growth companies often yield 2–5%, while high-growth firms may pay little or nothing, reinvesting instead. Yields far above the market can be a red flag, sometimes signaling a depressed price or an unsustainable payout. Compare a stock's yield to its peers and to safer income sources like bonds rather than chasing the highest number.
Why does dividend yield rise when the price falls?
Yield is the annual dividend divided by the current price, so with the dividend held constant, a lower price produces a higher yield. This inverse relationship means a rising yield is not automatically good news: it can reflect a falling share price that investors have marked down because they expect trouble, possibly including a dividend cut. Always check whether a high yield comes from a healthy payout or simply from a sinking stock price.
Is a higher dividend yield always better?
No. A very high yield can indicate that the market has driven the price down over concerns about the company's prospects, and an unusually large payout relative to earnings may not be sustainable. If the company cuts or suspends the dividend, both the income and often the share price fall. A moderate, well-covered dividend from a financially sound company is usually preferable to a headline yield that carries hidden risk of being slashed.
What is the difference between yield and total return?
Dividend yield measures only the cash income a stock pays relative to its price. Total return combines that dividend income with any change in the share price over the holding period, so it captures the full picture of what you earn or lose. A stock can have a high yield but a negative total return if its price falls, or a low yield but a strong total return driven by price appreciation.
How often are dividends actually paid?
Most U.S. companies that pay dividends do so quarterly, though some pay monthly, semi-annually or annually, and a few issue occasional special dividends. This calculator uses the annual dividend per share, so if you only know the quarterly amount, multiply it by four before entering it. Companies can raise, cut or suspend dividends at any time based on their earnings and priorities, so a current yield reflects today's payout, not a guaranteed future one.