Calculator
Dividend Yield Calculator
Use this free dividend yield calculator to compare what a stock pays with what it costs. Enter what it pays per dividend, how often it pays, and the current share price — yield turns that into a percentage you can compare across any company.
Enter Your Values
= $2.00 per year
Dividend yield
For reference, the S&P 500 yields just over 1% as of September 2026, versus a long-run average of about 1.6%.Yield
4.00%
$2.00 / $50.00 × 100
Yield moves every time the share price moves. Companies can also cut or suspend a dividend at any time.
What is dividend yield, and how do you calculate it?
Dividend yield tells you how much cash a stock pays you each year for every dollar you invest in it. A $50 stock paying $2 a year has a 4% yield: for every $100 you put in, you get about $4 back annually in cash.
The dividend yield formula
Dividend yield equals the annual dividend per share divided by the current share price, times 100. With a $2.00 annual dividend and a $50.00 share price, that works out to $2.00 ÷ $50.00 × 100 = 4%. Enter what's paid per dividend and select how often it's paid — most U.S. stocks pay quarterly — and this calculator works out the annual figure for you.
Forward yield vs. trailing yield
The dividend and frequency you enter build the forward yield — it annualizes the most recent payment, assuming it continues. Trailing yield instead uses the actual total paid over the last 12 months. They diverge right after a dividend change. If you want to see both at once, add the trailing 12-month total in advanced options — it'll show up as a second figure alongside the main yield.
Why yield matters more than the dividend amount
The dollar figure on its own tells you nothing about price. A company paying $5 per share sounds far more generous than one paying $1 — but if the first trades at $500 and the second at $20, the $1 payer actually returns five times as much per dollar invested. Yield puts every stock on the same scale so you can compare them fairly, and against alternatives like savings accounts or bonds.
What is a good dividend yield?
There's no single right number. As of September 2026, the S&P 500 yields just over 1%, against a long-run average of about 1.6%, partly because many of its largest companies pay little or no dividend. Many established dividend payers yield roughly 2% to 4%. Higher yields can be perfectly fine, but they deserve a closer look, and yields above 8% are unusual enough that this calculator flags them.
Checking whether a yield is sustainable
A very high yield is not automatically good news. Because price sits on the bottom of the equation, a falling share price pushes yield up — sometimes that's a bargain, sometimes it's the market predicting a cut. The payout ratio in advanced options gives you a quick sustainability check: it divides the dividend by earnings per share, showing how much of the company's profit it's actually paying out. A ratio comfortably under 60% suggests room to keep paying — or even raising — the dividend even through a weaker year.
Current yield vs. yield on cost
The main yield above uses today's share price. Your yield on cost divides the same dividend by the price you originally paid — enter it in advanced options to see both side by side. If the share price has risen since you bought, your yield on cost will be higher than the current yield.
Turning a yield into income
Multiply a yield by the amount you invest for a rough annual income: $10,000 at a 4% yield pays about $400 a year — enter an amount in advanced options to see this instantly. For an exact figure based on how many shares you own, use the Dividend Calculator. To see how reinvesting that income compounds over time, try the DRIP Calculator, and check what you'd keep after tax with the Dividend Tax Calculator.
Frequently asked questions
How do you calculate dividend yield?+
Divide the annual dividend per share by the current share price, then multiply by 100. A stock paying $2.00 a year and trading at $50.00 has a 4% yield. This calculator does the annualizing for you — enter what's paid per dividend and pick how often it's paid (monthly, quarterly, etc.) and it works out the yearly total.
What is a good dividend yield?+
There's no single right number. Many established dividend payers yield roughly 2% to 4%, while the S&P 500 as a whole yields just over 1% as of September 2026. Higher yields can be fine, but they deserve a closer look, and yields above 8% are unusual enough that this calculator flags them.
What's the difference between forward and trailing dividend yield?+
Trailing yield uses the actual dividends paid over the last 12 months. Forward yield annualizes the most recent payment instead, assuming it continues at that rate. They match unless the dividend recently changed — after a raise, forward yield is higher and more relevant to what you'll actually receive going forward; after a cut, trailing yield can overstate future income. Fill in the trailing total in advanced options to see both side by side.
Where do I find a stock's dividend and how often it's paid?+
Your broker's stock page or the company's investor relations site shows both. Enter the amount from a single payment and select its frequency (most U.S. stocks pay quarterly), and the forward annual dividend is calculated automatically. The trailing dividend, entered separately in advanced options, adds up what was actually paid over the last 12 months — useful if the payment recently changed.
What is the difference between dividend yield and yield on cost?+
Dividend yield divides the dividend by today's share price. Yield on cost divides it by the price you originally paid. Enter your original purchase price in advanced options to see both side by side — if the share price has risen since you bought, your yield on cost will be higher than the current yield.
What is a payout ratio, and why does it matter?+
Payout ratio is the dividend divided by earnings per share (EPS), showing how much of a company's profit it pays out versus keeps. A low ratio (under 60%) generally leaves room for the dividend to keep growing even through a rough year. A very high or negative ratio is a warning sign — the company may be paying more than it earns, which often precedes a dividend cut.
Why did a stock's dividend yield go up?+
Yield rises when the dividend increases or when the share price falls. A falling price pushes the yield up even though the dividend hasn't changed, which is why a very high yield can be a warning that the market expects a cut. Check whether the company's earnings comfortably cover what it pays out using the payout ratio field.
Is dividend yield the same as total return?+
No. Yield measures only the cash dividend relative to the share price. Total return also includes the change in the share price. A stock with a 5% yield whose price falls 10% has still lost money overall.
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