Dividend Yield Calculator
Calculate dividend yield, estimated annual dividend income, and monthly equivalent income from a share price, number of shares, and annual dividend per share.
Estimate dividend yield and income
Use the current share price and annual dividend per share. Figures are estimates before taxes and fees; dividends can change or be suspended.
Dividend yield is not total return. Share prices can fall, and past dividends do not guarantee future payments.
What dividend yield means
Dividend yield compares the annual dividend per share with the current market price. Investors often use it as one input when comparing income-producing shares, but it should not be considered in isolation. A high yield may reflect a falling share price or concerns about the sustainability of a company's dividend.
The annual income estimate multiplies shares owned by the annual dividend per share. It assumes the stated dividend continues for a full year and excludes taxes, fees, withholding, and reinvestment. The yield on your cost uses your optional average purchase price; it differs from the current market yield.
How to interpret the result
- Current yield: annual dividend per share divided by the current share price.
- Estimated annual income: shares held multiplied by annual dividend per share.
- Yield on cost: annual dividend per share divided by the average purchase price you enter.
These figures answer different questions. Current yield reflects the market price today, while yield on cost compares the dividend with your own cost basis. Neither measure includes price changes, and neither by itself shows total return. Compare dividend coverage, free cash flow, payout ratio, debt, and the company's dividend history before drawing conclusions. If a company pays quarterly, enter the total expected dividends per share for a full year rather than a single quarterly payment.
Frequently asked questions
Is a higher dividend yield always better?
No. Review payout sustainability, cash flow, debt, business conditions, and the risk that the dividend may be reduced.
Does this include dividend reinvestment?
No. It estimates cash dividends. Reinvestment would change the number of shares held over time and requires a separate projection.