Dividend Yield Calculator
A share’s dividend yield, and the income an investment in it would pay.
Good to know. A very high yield is often a warning: the price has fallen because the market expects the dividend to be cut.
How it works
In plain words
Add up a year of dividends per share and divide by the share price. The income from an investment is the number of shares it buys times the yearly dividend.
The formula
yield = yearly dividend per share ÷ price × 100 income = (amount ÷ price) × yearly dividend
Worked example
A 0.50 dividend every quarter is 2.00 a year. On a 50 share price, the yield is 2 ÷ 50 = 4%, and 10,000 invested pays about 400 a year.
Sources
No outside data or rates: this is plain arithmetic.
2 automated tests check its answers on every change.
About the dividend yield calculator
The dividend yield tells you how much a share or fund pays out each year as a percentage of its price, like an interest rate. It is a quick way to compare income from different investments, and from shares against savings accounts or bonds.
Enter the latest dividend and how often it is paid, and the calculator turns it into a yearly figure. Most US companies pay quarterly, many UK and European companies twice a year, and some funds monthly. The yield changes every day with the share price, and the dividend itself can rise, fall or stop.
A high yield isn’t always a good sign. If a company is in trouble, its share price falls, which pushes the yield up just before the dividend is cut. Look at whether the company earns enough to cover the dividend, and at its record of paying it. A broad fund spreads that risk across many companies.
The income shown is before tax. Dividends are taxed differently from wages in most countries, and are often taxed at source for foreign shares. Reinvesting dividends instead of spending them is how most of the long-run return from shares has been made; the compound interest calculator shows that effect.
Questions people ask
How do I calculate dividend yield?
Divide the yearly dividend per share by the share price. 2.00 a year on a 50 share is a 4% yield.
What is a good dividend yield?
Broad stock markets usually yield about 1.5 to 4%. Much higher yields can signal that investors expect a cut.
How much do I need to invest to get 1,000 a month in dividends?
12,000 a year at a 4% yield takes 300,000; at 3%, 400,000.