About the Dividend Yield Calculator
Dividend yield compares the cash dividends a company pays per share over a year with the current share price. It is a quick way to compare income from different stocks or funds.
The calculator uses only the dividend and price you enter. It does not forecast dividend growth or cuts.
How It Works
Divide the annual dividend per share by the share price. For income, multiply the annual dividend per share by the number of shares, and divide by 12 for a monthly average (actual payments are often quarterly).
Because yield depends on price, it rises when the price falls and falls when the price rises, even if the dividend is unchanged.
Formula
Dividend yield
Yield % = Annual Dividend per Share / Share Price × 100
Dividend income
Annual Income = Annual Dividend per Share × Shares; Monthly = Annual / 12
Example
A stock trading at $80 pays $0.60 per quarter ($2.40 a year), and you own 100 shares.
Inputs
- Annual dividend
- $2.40
- Share price
- $80.00
- Shares
- 100
Results
- Dividend yield
- 3.00%
- Annual income
- $240.00
- Monthly equivalent
- $20.00
- Position value
- $8,000.00
Assumptions & Limitations
- Dividend and price are your inputs; no live market data is used.
- Before taxes: dividends may be taxed as qualified or ordinary income depending on the stock and holding period.
- No reinvestment or growth of dividends is assumed.
Understanding Your Results
- Dividend Yield: Annual dividends as a percentage of the share price.
- Annual Dividend Income: Total dividends for your shares over a year (per share if no share count is entered).
- Monthly Equivalent: Annual income averaged across 12 months.
Frequently Asked Questions
Is a higher dividend yield better?
Not necessarily. A very high yield can reflect a falling share price or a dividend that may not be sustainable. Yield is one data point among many.
What is the difference between trailing and forward yield?
Trailing yield uses dividends paid over the past 12 months; forward yield uses the expected next 12 months. Enter whichever annual dividend you want to evaluate.
Are dividends guaranteed?
No. Companies can raise, reduce, or suspend dividends at any time.
How are dividends taxed?
In the U.S., qualified dividends are taxed at long-term capital gains rates and ordinary dividends at income tax rates. Dividends in tax-advantaged accounts follow that account's rules.
Can I use this for ETFs and funds?
Yes — enter the fund's annual distribution per share and its share price.