Boneyard Tools

Dividend Yield Calculator

Work out the dividend yield on a stock and the income it pays. Enter the share price, the annual dividend per share and how many shares you hold to see the yield plus your annual and monthly income.

How to use the dividend yield calculator

  1. Enter the current share price and the annual dividend paid per share.
  2. Add the number of shares you own to project your income.
  3. Read the dividend yield along with your annual and monthly income.

Examples

A 4% yielder

Price 100, annual dividend 4 per share
Yield 4% (no shares entered, so income is 0)

Income from 100 shares

Price 100, dividend 4, shares 100
Yield 4%, annual income 400, monthly income 33.33

Frequently asked questions

What is dividend yield?

Dividend yield is the annual dividend per share divided by the share price, shown as a percentage. A stock paying 4 in dividends at a price of 100 has a 4% yield.

How is dividend yield different from the payout ratio?

Yield compares the dividend to the share price, so it tells you the return on what you pay. The payout ratio compares the dividend to earnings, so it tells you how much of profit is paid out and how sustainable the dividend is.

How do I work out my monthly dividend income?

Multiply the annual dividend per share by the number of shares you hold to get annual income, then divide by 12. This calculator does both for you once you enter your share count.

What is a dividend yield trap?

A yield trap is a stock whose yield looks high mainly because the price has fallen. If earnings cannot support the payout, the dividend may be cut, so a very high yield is a reason to check the payout ratio and the business, not just to buy.

Should I use trailing or forward dividends?

Either works as long as you are consistent. Trailing uses the last 12 months of dividends; forward uses the expected next 12 months. Enter whichever figure you trust for the annual dividend.

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