Dividend Yield Calculator [2025]
Quickly calculate a stock's dividend yield based on its dividend payments and current price.
Dividend Yield Calculator
Optional Inputs for More Detail
What is Dividend Yield?
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 expressed as a percentage and represents the dividend-only return of a stock investment.
The formula is:
Dividend Yield (%) = (Annual Dividend Per Share / Current Share Price) × 100
Investors use dividend yield to assess the income potential of a stock compared to its market price.
How to Use the Calculator
- Enter Dividend Per Share: Input the cash dividend amount paid per share.
- Select Dividend Frequency: Choose whether the amount entered is paid 'Annual'ly or 'Quarterly'. The calculator will automatically determine the annual dividend.
- Enter Current Stock Price: Input the current market price of one share of the stock.
- Select Currency: Choose the currency for the inputs.
- Calculate Yield: Click the button to see the dividend yield percentage.
- Review Result: The calculator displays the dividend yield and the inputs used for the calculation.
Interpreting Dividend Yield
Higher Yield
Generally indicates a larger dividend payment relative to the stock price. This can be attractive for income-focused investors. However, an unusually high yield might signal higher risk or that the market expects the dividend to be cut.
Lower Yield
May suggest a smaller dividend relative to the price. This could mean the company retains more earnings for growth, or the stock price has risen significantly. Growth-focused investors might prefer companies that reinvest earnings rather than paying high dividends.
Context is Key
Dividend yield should be compared within the same industry and against the company's historical yield. It's just one piece of the puzzle; consider the company's financial health, dividend history, payout ratio, and growth prospects before making investment decisions.
Frequently Asked Questions
What is a "good" dividend yield?
There's no single answer. A "good" yield depends on the industry, current market conditions, interest rates, and your investment goals. Yields typically range from 0% (for non-dividend payers) to over 10% (often indicating higher risk). Comparing to industry averages and the overall market (e.g., S&P 500 average yield) provides context.
Does dividend yield include stock price appreciation?
No. Dividend yield only measures the return from dividends. The total return from a stock investment includes both dividends received and any change in the stock's price (capital appreciation or depreciation).
Why does the yield change?
The yield changes if the annual dividend amount changes (company increases or decreases payouts) or if the stock price changes. If the price goes up and the dividend stays the same, the yield goes down, and vice-versa.
Is a high dividend yield always better?
Not necessarily. A very high yield can sometimes be a warning sign that the market believes the dividend is unsustainable and might be cut, or that the company faces significant challenges (leading to a lower stock price). Always investigate why a yield is particularly high.
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