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.