Dividend Yield Calculator
Current yield and the yield you actually bought.
Dividend Yield Calculator
Current yield = annual dividend / current price; yield on cost = annual dividend / purchase price.
Calculated instantly
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What This Calculator Does
The Dividend Yield Calculator reports the current yield, the yield on your original cost, and the annual income from your share count. It separates the yield a new buyer sees from the yield you locked in when you bought.
How It Works
Current yield is the annual dividend per share divided by the current share price. Yield on cost uses the purchase price instead, so it rises as the company increases its dividend. Annual income is the dividend per share times the number of shares, and position value and cost basis show the capital side of the same holding.
Example
A stock paying $2.40 a year and trading at $60 yields 4 percent. If you bought 100 shares at $40, your yield on cost is 6 percent. The annual income is $240, the position is worth $6,000, and your cost basis is $4,000.
Formula
annual dividend / current priceannual dividend / purchase priceannual dividend x sharescurrent price x sharesReading the Results
Current dividend yield
The income rate a buyer gets at today price. It changes every day with the share price, even if the dividend does not.
Yield on cost
The income rate on what you paid. It is a personal performance measure, not a comparison with the current market.
Annual dividend income
Dividend per share times shares, before tax and withholding. It assumes the dividend is maintained for a full year.
Sources and References
US SEC Investor.gov - Dividend
How dividends and yields work
Investor education on dividend payments and the difference between yield and total return.
CFA Institute - Equity Valuation: Dividends and Yield
Dividend yield and payout ratios
Explains why yield alone is not a valuation or safety measure.
References identify the method or data behind this calculator. Where a standard or tariff changes, the current edition applies, and the assumptions stated above take precedence over a remembered figure.
Frequently Asked Questions
What is a good dividend yield?
It depends on the sector, the payout ratio, and the risk-free rate. A utility might pay 4 percent with stable cash flow, while a 7 percent yield in a cyclical company can signal a dividend cut. Compare yield with payout ratio, debt, and free cash flow rather than a single threshold.
What is yield on cost?
The annual dividend divided by your original purchase price. If you bought at $40 and the dividend is $2.40, your yield on cost is 6 percent even if the shares now trade at $60 and yield 4 percent. It measures the income return on your invested capital.
Why does a high dividend yield sometimes mean risk?
Yield rises when the price falls or the dividend rises. If the price has fallen because the business is deteriorating, the market may expect a cut. Check the payout ratio, earnings, and cash flow before treating a high yield as income.
Are dividends guaranteed?
No. A board can reduce or suspend a dividend, and preferred dividends can be deferred under their terms. Common dividends are not a contractual obligation. Diversify across issuers and keep an emergency reserve rather than relying on one payout.
How are dividends taxed?
In the US, qualified dividends are generally taxed at capital gains rates, while ordinary dividends are taxed as income. The treatment depends on the issuer, your holding period, and your jurisdiction. This calculator reports pre-tax income only.