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Dividend Yield Calculator
Work out the dividend yield, yield on cost and annual income from a stock. Enter the share price, dividend and your holding, then press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
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How dividend yield works
Dividend yield turns a dollar payout into a percentage you can compare across stocks. You divide the annual dividend per share by the current share price. Because the price moves every day, the yield moves too, even when the company has not changed its payout.
To see real income, multiply the annual dividend per share by how many shares you hold. A position of 200 shares paying $4 each generates $800 a year, or about $67 a month if the dividend is spread evenly across the year.
Yield on cost vs current yield
Current yield uses today's price, while yield on cost uses the price you actually paid. Long-term holders of companies that steadily raise dividends often enjoy a yield on cost well above the current yield. To project how reinvested dividends compound, try our dividend reinvestment calculator.
Things to keep in mind
Yield alone does not tell you if a dividend is safe. Check the payout ratio and the company's earnings before chasing a high number. For investor basics, the SEC investor education site is a reliable source. Browse all of our free calculators for more.
Frequently asked questions
What is dividend yield?
Dividend yield is the annual dividend per share divided by the current share price, shown as a percentage. A stock paying $4 a year at a $100 price has a 4% yield. It tells you how much income you earn for each dollar invested at today's price.
What is the dividend yield formula?
The formula is yield = (annual dividend per share / share price) × 100. To find your total income, multiply the annual dividend per share by the number of shares you own.
What is yield on cost?
Yield on cost compares the current annual dividend to the price you originally paid, not today's price. If you bought at $80 and the stock now pays $4 a year, your yield on cost is 5% even though the current yield is lower. It rewards holding shares that raise dividends over time.
Is a higher dividend yield always better?
Not always. A very high yield can signal that the share price has fallen because investors expect trouble, and the dividend may be cut. Look at whether the company can sustain its payout, not just the headline yield.
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