Dividend Yield Calculator

Our dividend yield calculator determines the annual dividend income generated by an investment relative to its current price. Simply enter the stock's dividend per share and current market price to instantly calculate the dividend yield, and find the income potential of your investments.


What Is The Meaning Of Dividend Yield?

The dividend yield is a financial ratio that tells how much percentage of dividends you are getting compared to the price of a particular stock. Let us understand this with an example.

Suppose the price of a company XYZ is ₹100 and the company has given a dividend of ₹5 this year. So the dividend yield of this company will be 5%. This means you receive a dividend equal to 5% of the current price of the company's stock.

Image that showing the yield visually

The Amazing Fact About Dividend

Have you ever wondered which company in the world first paid dividends? The answer is the Dutch East India Company. It was the world's first publicly listed company that started paying dividends to its shareholders in 1602.

How Does the Dividend Yield Calculator Work?

The Dividend Yield Calculator help you to measure of the income generated by an investment relative to its price. It calculates this by taking the annual dividends paid per share and dividing it by the current market price per share. The result is expressed as a percentage.

This is the formula that used to calculate the dividend yields:

Dividend Yield = Annual Dividends Per Share / Stock Price x 100
dividend yield calculator illustration

Frequently Asked Questions

Let's look at some of the questions for Dividend Yield that are frequently searched by people.

Mostly, stable, old, and large-cap companies provide good and consistent dividends to their shareholders. Stocks with consistently higher dividend yields are also called value stocks.

No, this is not necessary, because it often happens that dividend yield can be high due to the fall in stock price in the short term. Therefore, it is important to look at the historical dividend yield of the company. Additionally, analyzing how stable the company's business and earnings are is also crucial.

Because some companies reinvest their profits to expand the company instead of distributing them to shareholders. This can be very beneficial for the company in the future.

A good dividend yield is generally considered to be between 2% and 6%. A yield below 4% is considered low, and a very high yield can be risky.

No, dividend yield cannot be negative because it's calculated by dividing the dividend per share by the stock price, and both of these values can't be negative.