Updated on September 2nd, 2025

Dividend Yield Calculator

Created By Jehan Wadia


Dividend Yield
1.5%

Introduction

A dividend yield calculator helps you find out how much money a stock pays you compared to its price. When you buy shares of a company, some companies pay you money called dividends. This is their way of sharing profits with people who own their stock.

The dividend yield tells you the percent of return you get from dividends alone. For example, if a stock costs $100 and pays $2 per year in dividends, the yield is 2%. This means for every $100 you invest, you get $2 back each year in dividend payments. Companies can pay dividends monthly, every three months, twice a year, or once a year. Our calculator makes it easy to figure out the yield no matter how often the company pays. If you want to calculate your total dividend income over time, try our Dividend Calculator.

Knowing the dividend yield helps you compare different stocks and see which ones pay you more money for what you invest. Higher yields mean more income, but remember to also look at if the company is strong and can keep paying dividends over time.

How to use our Dividend Yield Calculator

Enter your dividend payment details and stock price to find out your dividend yield percentage.

Dividend Amount: Type the dollar amount you get paid per share for each dividend payment. This is the cash payment you receive from owning the stock.

Dividend Frequency: Pick how often you get dividend payments. Choose monthly for 12 payments per year, quarterly for 4 payments per year, semiannually for 2 payments per year, or annually for 1 payment per year.

Share Price: Enter the current price of one share of the stock. This is how much it costs to buy one share today.

Click "Calculate Dividend Yield" to see your yearly dividend yield as a percentage. This shows how much dividend income you earn compared to the stock price.

What is Dividend Yield?

Dividend yield is a way to measure how much money a company pays you in dividends compared to its stock price. Think of it like getting paid for owning a piece of a company. When you buy a stock, some companies share their profits with you through dividends. These are regular cash payments sent to people who own their stock.

The dividend yield shows you the return on your investment as a percentage. For example, if you buy a stock for $100 and it pays you $3 per year in dividends, your dividend yield is 3%. This means for every $100 you invest, you get $3 back each year in dividend payments. Companies can pay dividends monthly, quarterly (four times a year), twice a year, or once a year. For investors planning early retirement through passive income, you might also find our Coast FIRE Calculator helpful to see how dividend income fits into your long-term financial goals.

A higher dividend yield means you get more money back compared to what you paid for the stock. However, a very high yield might mean the stock price has fallen, which could be a warning sign. Smart investors look at dividend yield along with other factors like how stable the company is and if it can keep paying dividends in the future. Dividend yield helps you compare different stocks to see which ones might give you better income from your investment.


Frequently Asked Questions

What is the formula for calculating dividend yield?

The formula is simple: take the yearly dividend payment and divide it by the stock price, then multiply by 100 to get a percentage. If a company pays dividends more than once a year, multiply the single payment by how many times they pay per year first.

Why do some companies not pay dividends?

Some companies keep all their profits to grow the business instead of paying dividends. Young companies often do this to expand faster. They might build new stores, create new products, or buy other companies. These companies hope their stock price will go up instead of paying cash to shareholders.

Can dividend yield change over time?

Yes, dividend yield changes when either the dividend payment or stock price changes. If the stock price goes up but the dividend stays the same, the yield goes down. If the stock price falls but the dividend stays the same, the yield goes up.

What is a good dividend yield percentage?

A good dividend yield is usually between 2% and 6%. Lower than 2% might not give much income. Higher than 6% could mean the company is having problems or the dividend might get cut. Always check if the company can afford to keep paying its dividend.

How do I find dividend information for a stock?

You can find dividend information on finance websites, your broker's website, or the company's investor relations page. Look for the dividend per share amount and how often they pay. Most companies announce their dividends in advance.

Do I pay taxes on dividends?

Yes, most people pay taxes on dividends. The tax rate depends on your income and how long you owned the stock. Some dividends get taxed at lower rates if you hold the stock for more than 60 days. Check with a tax expert for your specific situation.

What happens to dividend yield when stock prices drop?

When stock prices drop but the dividend payment stays the same, the yield goes up. This might seem good, but be careful. The stock price might be falling because the company has problems and might cut the dividend soon.

How often do companies increase their dividends?

Many strong companies increase dividends once a year. Some companies have raised their dividends every year for decades. These are called dividend aristocrats if they've raised dividends for 25 years or more.


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