Dividend Yield Calculator
Calculate a stock's dividend yield and the passive income your investment could generate.
Content updated July 1, 2026
Dividend yield is the annual dividend divided by the share price. Yields change as prices move, and dividends are not guaranteed.
Dividend yield tells you how much income a stock pays relative to its price — a key number for income investors. This calculator works out the yield from the share price and annual dividend, then estimates the yearly and monthly income your investment would produce.
It's a fast way to compare income stocks, size a position for a target income, or sanity-check whether a high yield is really as generous as it looks.
The Dividend Yield formula
Dividend yield = Annual dividend per share ÷ Share price × 100 · Income = Shares owned × Annual dividendAnnual dividend per share = total dividends paid per share in a year · Share price = current market price. Multiply your number of shares by the dividend for expected income.
Worked example
A stock priced at $100 paying $4 a year yields 4 ÷ 100 × 100 = 4%. Hold 200 shares and that's 200 × $4 = $800 a year, or about $67 a month, in dividend income.
How dividend yield is calculated
Yield = annual dividend per share ÷ share price × 100. A stock at $100 paying $4 a year yields 4%. Because price is in the denominator, yield rises when the price falls — so an unusually high yield can be a warning sign, not just a bargain.
Dividends aren't guaranteed; companies can cut them. Look at whether the payout is sustainable, not just the headline yield.
Frequently asked questions
▶What is a good dividend yield?
It varies by market and sector, but many established dividend payers sit in the 2–5% range. Very high yields can signal risk that the dividend will be cut, so look beyond the number.
▶Is dividend yield the same as total return?
No. Yield is only the income portion. Total return also includes any change in the share price, which can be positive or negative.
▶How do I calculate dividend yield?
Divide the annual dividend per share by the current share price and multiply by 100. A $50 stock paying $2 a year yields 2 ÷ 50 × 100 = 4%.
▶Why does dividend yield rise when the share price falls?
The dividend is in the numerator and the price in the denominator, so a falling price lifts the yield if the payout holds. A very high yield can therefore signal a struggling company rather than a bargain.
▶What's the difference between dividend yield and dividend payout ratio?
Yield compares the dividend to the share price. The payout ratio compares the dividend to the company's earnings, showing how much profit is being returned versus reinvested.
▶How much do I need invested to earn a target income from dividends?
Divide your target annual income by the yield as a decimal. For $5,000 a year at a 4% yield you'd need 5,000 ÷ 0.04 = $125,000 invested.
▶Are dividends guaranteed?
No. Companies can cut or suspend dividends at any time, especially in tough conditions. Look at whether the payout is sustainable, not just the headline yield.
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Open calculator →Disclaimer: Dividend Yield Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.