How is dividend yield calculated?

Dividend yield equals the annualized dividend per share divided by the current share price. A $4 annual dividend on a $100 share gives a 4% yield.

Is a higher dividend yield always better?

No. A very high yield often signals that investors expect a dividend cut, or that the share price has fallen sharply. Always look at the payout ratio, free cash flow, and growth history alongside yield.

How do I annualize a monthly dividend?

Multiply the monthly per-share payment by 12. For quarterly payments multiply by 4; semi-annual by 2; annual by 1.

Dividend Yield Calculator

Dividend Yield Calculator iAnnual dividend divided by share price, expressed as a percent. A $4 annual dividend on a $100 stock has a 4% yield.

Annual dividend per share: -

Current yield: -

How It Works - How does the dividend yield calculator work?

Dividend yield is the simplest comparison tool in income investing. It tells you what percentage of a share price you receive back each year as a cash dividend, ignoring any future stock-price changes.

The math has two steps. First we annualize the dividend by multiplying the per-payment amount by the number of payments per year - 12 for monthly payers, 4 for quarterly, 2 for semi-annual, 1 for annual. Then we divide that annualized dollar amount by the current share price.

For example: Realty Income (ticker O) might pay $0.265 per share each month. Annualized, that is $0.265 * 12 = $3.18. If the stock trades for $55, the dividend yield is $3.18 / $55 = 5.78%.

Yield alone is not a buy signal. A very high yield often signals that the market expects a dividend cut. A yield that is rising because the share price is collapsing is a warning sign, not an opportunity. Pair the yield with a look at the company payout ratio (dividend / earnings), free cash flow, and dividend growth history - which is exactly what the per-stock pages and the Comparison tool on this site help you do.

Once you know a stock yield, you can also estimate how much capital you need to generate a target income. The DRIP calculator projects what happens when you reinvest those dividends over many years, and the per-stock pages compute the Basic Dividend Formula - the lump-sum capital required for one dollar of monthly income forever.

Not financial advice. For informational and educational purposes only. Numbers come from public market data and may be stale. Always consult a licensed financial advisor before making investment decisions.