How to use this calculator
Enter the current stock price and the annual dividend per share. The calculator will immediately show you the dividend yield as a percentage, along with your projected annual and monthly income based on the number of shares you own.
If you want to see your yield on cost, enter the price you originally paid per share. Yield on cost reflects the income return on your actual investment rather than the current market price, which is especially useful for long term holdings where the stock price has changed significantly since you bought it.
The results also show where your yield falls relative to common market benchmarks. A contextual rating helps you quickly assess whether the yield is conservative, moderate, high, or potentially risky. Use this information alongside other metrics like payout ratio and earnings growth to make informed decisions about dividend stocks.
Understanding dividend yield
Dividend yield is calculated by dividing the annual dividend per share by the current stock price. It tells you what percentage of your investment you receive back as income each year. A $50 stock paying $2 annually has a 4% yield.
Yield on cost uses your original purchase price instead of the current price. If you bought at $25 and the stock now pays $2, your yield on cost is 8% even though the current yield may be lower. This shows the real return on your original investment.
Frequently asked questions
What is a good dividend yield?
Between 2% and 4% for stable companies. The S&P 500 averages about 1.5% to 2%. Above 6% may signal risk.
Is high yield always better?
No. Very high yields often indicate a falling stock price or unsustainable payout. Check the payout ratio and earnings stability before investing for yield alone.
Dividend yield vs dividend growth?
Yield is a snapshot of current income. Growth is how fast the dividend increases. A low yield stock with strong growth may produce more income over time than a high yield stock with no growth.
How often are dividends paid?
Most US companies pay quarterly. Some pay monthly (often REITs) or semi-annually. Check the company's investor relations page for the schedule.