Dividend yield shows how much income a stock pays relative to its price. Income investors use yield to compare dividend stocks and estimate cash flow.
How to use this calculator
- Enter annual dividend per share.
- Enter current share price.
- Review dividend yield percentage.
Formula
Dividend yield = (Annual dividend per share ÷ Share price) × 100.
Example
A stock paying $2.40 per year with a $60 share price has a 4% dividend yield.
Frequently asked questions
Do dividends change yield?
Yes. Yield moves with dividend payments and share price. Past dividends do not guarantee future payouts.
Is higher yield always better?
Not necessarily. Very high yields can signal price declines or unsustainable payouts.