Dividend Yield Calculator
This is an online dividend yield calculator that helps you find the dividend yield of a stock.
The dividend yield is an easy way to compare the relative attractiveness of various dividend-paying stocks. It is an important factor in determining the true value of dividend stocks. Depending on how much a stock price moves during a period (i.e. a day, month or year), the dividend yield is constantly changing as the price of the stock changes. So, suppose a stock price is trending upward, it will need to raise its dividend payout in order to maintain its dividend yield.
Calculating dividend yield
The dividend yield (or known as a dividend-price ratio) of a share is the dividend per share, divided by the price per share.
Dividend yield = Annual dividend / Current stock price
It is also a company’s total annual dividend payments divided by its market capitalization, assuming the number of shares is constant. It is often expressed as a percentage.
Dividend yield example
For example, if stock A had a share price of $100 and an annualized dividend of $5.00, its yield would be 5%.
$5.00 / $100 = .05
- When the 0.05 is put into percentage terms, it would make a 5% yield.
- If this share price rose to $150, but the dividend payout was not increased, its yield would fall to 4.16%.