How to use the Dividend Yield Calculator
Enter the dividend paid per share over a year and the current share price. The result is the yearly dividend as a percentage of the price.
Worked example
A share priced at $60 that pays $2.40 a year in dividends yields 2.40 ÷ 60 × 100 = 4%. If you hold 100 shares, that is $240 a year before tax. If the price falls to $48 and the dividend stays the same, the yield rises to 5%.
A high yield is not always good
Yield goes up when the price goes down, so an unusually high yield can be a sign that the market expects the dividend to be cut. Look at whether the company earns enough to cover the payment and how steady its dividends have been over several years.
The formula
Dividend yield = annual dividend per share ÷ share price × 100
Examples
- 2 dividend on a 50 share
Current yield: 4%
- 3.60 dividend on a 120 share
Current yield: 3%
- 0.45 dividend on a 18.50 share
Current yield: 2.43%
Limitations and assumptions
Based on the dividend you enter. Companies can cut or raise dividends at any time, and this is not investment advice.
Frequently asked questions
How is dividend yield calculated?
Annual dividend per share ÷ share price × 100.
Is a high yield good?
Not always. A high yield can reflect a falling price or an unsustainable payout.
Which dividend should I use?
The total paid over the last twelve months, or the current rate times the number of payments per year.
How do I see income in currency?
Use the dividend income calculator.