Dividend Yield Calculator
Income Relative to What You'd Pay Today
Dividend yield expresses a stock's annual dividend payout as a percentage of its current share price, which is what makes it useful for comparison across companies of wildly different share prices. A $2.40 annual dividend means very different things on a $20 stock and a $200 stock, and yield is the figure that normalizes for that difference.
The Formula
The result moves in both directions as share price changes: if the dividend stays fixed but the price falls, yield rises — which is why an unusually high yield can be a red flag that the market is pricing in a dividend cut rather than a straightforward bargain.
Where This Matters
- Income-focused investing — retirees and income investors often screen for and compare stocks by yield to build a portfolio targeting steady cash distributions.
- Spotting yield traps — a yield well above a stock's historical average or its sector peers often signals the price has dropped on bad news, not that the payout is unusually generous.
- Comparing to bond yields — dividend yield gives income investors a like-for-like figure to weigh equity income against bond coupon rates.
Worked Example
A stock paying $2.40 per share annually, trading at $60 per share: $2.40 ÷ $60 × 100 = 4.00% dividend yield.
| Share price | Dividend yield |
|---|---|
| $30 | 8.00% |
| $60 | 4.00% |
| $120 | 2.00% |
The dividend amount is unchanged across all three rows — yield moves purely as a function of share price.
How to Use This Calculator
- Enter the annual dividend paid per share.
- Enter the current share price.
- Select Calculate to get the dividend yield percentage.
Related Calculations
Project how that yield compounds over time with the Dividend Reinvestment (DRIP) Calculator, or check the drag of fund fees with the Expense Ratio Calculator.