Dividend Yield Calculator

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It's an important metric for income-focused investors who want to generate regular cash flow from their investments.

Our calculator helps you analyze dividend-paying stocks, project future income growth, and understand the total return potential including both dividends and capital appreciation.

Dividend Yield Formula:

Dividend Yield = (Annual Dividend per Share ÷ Stock Price) × 100

Types of Dividend Yields:

• Current Yield: Based on current stock price
• Yield on Cost: Based on your original purchase price
• Forward Yield: Based on expected future dividends

Good Dividend Yield Ranges:

• 2-4%: Typical for large-cap, stable companies
• 4-6%: Higher yield, may indicate value or risk
• 6%+: Very high yield, investigate sustainability
• 0-2%: Growth companies that reinvest profits

Dividend Investment Benefits:

• Regular Income: Quarterly or annual cash payments
• Inflation Protection: Growing dividends beat inflation
• Lower Volatility: Dividend stocks tend to be less volatile
• Compounding: Reinvesting dividends accelerates growth

Dividend Investment Risks:

• Dividend Cuts: Companies may reduce or eliminate dividends
• Interest Rate Risk: Rising rates make bonds more attractive
• Sector Concentration: High-yield sectors may underperform
• Tax Implications: Dividends are taxable income

Features:

• Calculate current dividend yield
• Project future dividend growth
• Estimate total return including appreciation
• Monthly and annual income calculations
• Yield on cost analysis for long-term holdings