Dividend Yield Calculator
Calculate a stock's dividend yield, your personal yield on cost, and the annual dividend income from your shares.
How to use this tool
- Enter the total annual dividend paid per share.
- Enter the current share price to get the market dividend yield.
- Enter your original cost per share to see your yield on cost.
- Add your share count to estimate total annual dividend income.
- Compare the market yield with your yield on cost over time.
Dividend yield turns a cash payout into a comparable percentage return. Enter the dividend, price, your cost, and share count to see the yield, your yield on cost, and your annual income.
Formula
Dividend yield = (Annual dividend per share ÷ Current share price) × 100.
Yield on cost = (Annual dividend per share ÷ Your cost per share) × 100. Because your cost is fixed, a rising dividend lifts your yield on cost over time.
Annual dividend income = Shares owned × Annual dividend per share.
How it works
Dividend yield expresses a stock's annual cash payout as a percentage of its price, making it easy to compare income across very differently priced shares. A $2.50 dividend on a $50 stock and a $5.00 dividend on a $100 stock are both 5% yields. Yield rises when the dividend grows or the price falls, and falls when the price rises faster than the payout.
Yield on cost is the same ratio measured against the price you paid rather than the current price. Long-term holders of dividend-growth stocks often see their yield on cost climb well above the market yield, because the numerator (the dividend) keeps rising while their denominator (cost basis) stays fixed. It is a personal metric and should not be compared with the quoted market yield of other stocks.
This calculator uses the trailing or declared annual dividend you enter; it does not forecast dividend growth, account for taxes or withholding, or judge whether a payout is sustainable — an unusually high yield can signal a falling price or a dividend at risk of being cut. Reviewed by the AbraCalc Investing Desk. This tool provides general information, not investment advice; verify figures and consult a licensed professional before investing.
Worked example
$2.50 dividend, $50 share price, bought at $50, 50 shares
- Dividend yield = ($2.50 ÷ $50) × 100 = 5.00%.
- Yield on cost = ($2.50 ÷ $50) × 100 = 5.00% (you bought at today's price).
- Annual income = 50 shares × $2.50 = $125.00.
Dividend yield: 5.00% — yield on cost 5.00%, annual income $125.00.
Dividend yield by share price (for a $2.00 annual dividend)
| Share price | Annual dividend | Dividend yield |
|---|---|---|
| $20 | $2.00 | 10.00% |
| $25 | $2.00 | 8.00% |
| $40 | $2.00 | 5.00% |
| $50 | $2.00 | 4.00% |
| $100 | $2.00 | 2.00% |
Key terms
- Dividend yield
- A stock's annual dividend per share divided by its current price, shown as a percentage.
- Yield on cost
- Annual dividend per share divided by the price you originally paid; a personal, holding-specific yield.
- Cost basis
- The price you paid per share (adjusted for splits and reinvestments), used to measure your own return.
- Dividend
- A distribution of a company's earnings paid to shareholders, usually in cash on a regular schedule.
Frequently asked questions
- How is dividend yield calculated?
- Divide the annual dividend per share by the current share price and multiply by 100. For example, a $2.50 dividend on a $50 stock yields 5%.
- What is a good dividend yield?
- It depends on the sector and interest-rate environment. Broad-market yields are often 1.5–3%, while income-focused stocks may yield 4–6%. A very high yield can be a warning sign of a falling price or an unsustainable payout.
- What is yield on cost?
- Yield on cost measures the dividend against the price you paid rather than today's price. For dividend-growth stocks held a long time, it can rise well above the current market yield.
- Does a higher yield always mean a better investment?
- No. Yield ignores price risk, dividend sustainability, and total return. A stock can have a high yield simply because its price has dropped on bad news.