Dividend Yield Calculator

Dividend yield is a financial ratio showing how much a company pays out in dividends each year relative to its stock price. Expressed as a percentage, it tells you the cash return on investment you receive from a stock based solely on dividend payments, excluding capital gains.

Because the share price is in the denominator of the formula, dividend yield moves inversely to stock price. If a company keeps its dividend constant, its yield increases when the stock price falls, and its yield decreases when the stock price rises.

Not necessarily. A very high dividend yield (sometimes called a 'dividend trap') can indicate a company in financial distress whose stock price has plummeted. If the yield is unsustainably high, the company may cut or eliminate its dividend in the future to preserve cash.

Dividends are commonly paid quarterly in the U.S., but can be paid monthly, semi-annually, or annually. To find the annual dividend, you multiply the individual payment amount by the payment frequency (e.g., multiply by 4 for quarterly payments, or by 12 for monthly payments).