Dividend Yield Calculator
Calculate dividend yield to evaluate the income return on your stock investments
Calculate Dividend Yield
Dividend Information
Dividend payment amount per period
How often dividends are paid
Stock Price
Current market price per share
Investment Analysis (Optional)
Total amount you plan to invest
Dividend Yield Results
Yield Analysis
Company Alpha Example
Stock Information
Company: Alpha Corp
Dividend per Period: $2.50
Frequency: Quarterly (4x/year)
Share Price: $120.00
Step-by-Step
1. Annual Dividends: $2.50 × 4 = $10.00
2. Dividend Yield: $10.00 ÷ $120.00
3. Result: 8.33%
Attractive yield for income investors
Yield Categories
Low Yield
Growth stocks
Focus on capital appreciation
Moderate
Balanced return
Stable mature companies
Attractive
Good income
Income-focused investors
High Risk
Unsustainable?
Investigate thoroughly
Dividend Investment Tips
Look for sustainable payout ratios (<60%)
Check dividend growth history
Consider total return (yield + growth)
Diversify across sectors
Beware of yield traps (unsustainable high yields)
Understanding Dividend Yield
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 annual return an investor receives from dividends alone, not including capital gains.
Why It Matters
- •Measures income return on investment
- •Helps compare dividend-paying stocks
- •Indicates company's dividend policy
- •Useful for income-focused investors
Calculation Formula
Dividend Yield = Annual Dividends ÷ Share Price
Result expressed as percentage
- Annual Dividends: Total yearly dividend per share
- Share Price: Current market price per share
- Result: Percentage return from dividends
Example: $4 annual dividend ÷ $100 share price = 4% yield
Investment Strategies
- ✓Income Investing: Focus on high, sustainable yields
- ✓Dividend Growth: Rising dividends over time
- ✓DRIP: Reinvest dividends for compounding
- ✓Diversification: Mix of dividend-paying stocks
Warning Signs
- ✗Yields significantly above sector average
- ✗Declining earnings with maintained dividends
- ✗High payout ratios (>80%)
- ✗Inconsistent dividend payment history