What this calculator does
Dividend yield is the annual dividend a share pays, stated as a percentage of its current price. It is the standard way to compare income across shares trading at very different prices: a $2 dividend means very different things on a $20 share and a $200 one, and yield puts both on the same footing.
Yield moves with the share price even if the dividend itself never changes. A falling share price pushes yield up, and a rising one pushes it down, which is why a stock topping the highest-yield lists is sometimes there because its price has fallen sharply rather than because the dividend grew. This calculator also works out yield on cost, using what you actually paid rather than today’s price, which strips that effect out for a share already held.
The formula
Divide the annual dividend per share by the current share price and multiply by 100. Yield on cost repeats the same division against the price originally paid instead of the current price, which shows the return on the original investment rather than on today’s market value.
| Term | Meaning |
|---|---|
| Dividend yield | Annual dividend per share ÷ current share price × 100. |
| Yield on cost | Annual dividend per share ÷ original purchase price × 100. |
| Dividend | The cash paid out per share over a year, before any dividend reinvestment. |
The inputs explained
| Field | What to enter |
|---|---|
| Annual dividend per share ($) | The total dividend paid per share over the past twelve months, or the expected annual rate if using the most recent declared payment. |
| Current share price ($) | The current market price per share. |
| Price you paid per share (0 to skip yield on cost) ($) | What you paid per share when you bought it, if you already hold the stock. Leave at 0 or match the current price to skip this figure. |
When to use it
Comparing income shares of different prices
Yield converts dividends on shares trading at very different price points into one comparable percentage, which raw dividend amounts cannot do on their own.
Checking whether a high yield reflects a falling price
A yield that looks unusually high compared with a company’s history is worth checking against its recent share price movement, since a falling price raises yield without the dividend itself improving.
Tracking return on a long-held position
Yield on cost shows the income return against what was actually paid years ago, which tends to be higher than the current yield for a share bought early and held through price growth.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How dividend yield changes with share price at a fixed dividend
A fixed $1.60 annual dividend, at a range of share prices.
How dividend yield changes with the dividend at a fixed price
A fixed $48 share price, at a range of annual dividends.
Questions
What is a good dividend yield?
It varies by sector, interest rate environment and how much of the return a company pays out versus reinvests, so there is no fixed benchmark. A yield well above a stock’s own history or its sector peers is worth checking for a falling price or a dividend at risk of being cut, rather than treated as simply good value.
Why is my yield on cost different from the current yield?
Current yield uses today’s share price; yield on cost uses whatever price you originally paid. If the share price has risen since purchase, yield on cost is higher than the current yield, since the same dividend is being measured against a smaller original outlay.
Does dividend yield include dividend growth?
No, this figure is a snapshot against the most recent or expected annual dividend. It says nothing about whether that dividend is likely to grow, stay flat or be cut, which is a separate judgement about the business.
Is dividend yield the whole return from holding a share?
No. Total return also includes any change in the share price itself. A share with a modest yield but strong price growth can outperform a high-yield share whose price is flat or falling, and vice versa.
For yield alongside how much of earnings the dividend actually consumes, see the dividend yield and payout ratio calculator. To value a share from its expected future dividends instead, use the dividend discount model calculator.