Dividend Yield Calculator

Dividend yield is the annual dividend a company pays per share, expressed as a percentage of its current share price. It tells you how much cash income you receive each year for every dollar invested. A stock paying $2 per year that trades at $50 has a dividend yield of 4%.

Dividend yield = (annual dividend per share ÷ current share price) × 100. If the company pays quarterly, multiply the quarterly dividend by 4 to annualize it. Monthly payers multiply by 12, semi-annual by 2. A $0.50 quarterly dividend gives $2.00 annually; divided by a $50 share price which is a 4% yield.

It means the annual cash return you earn from dividends alone, relative to what a share costs today. It lets you compare income across stocks with very different prices. It excludes capital gains, and it isn't guaranteed, since companies can cut or suspend dividends at any time.

Roughly 2% to 5% is generally considered healthy for an established company. The S&P 500 as a whole yields around 1.3%. Yields above 6% deserve scrutiny, because an unusually high yield often reflects a falling share price rather than a generous dividend, and may signal a cut is coming or the company is in financial trouble.

Trailing yield sums the actual dividends paid over the last twelve months and divides by the current price, so it's backward looking. Forward yield takes the most recent dividend, multiplies by payment frequency, and divides by the current price, projecting the next twelve months. Forward yield reacts immediately to a raise or cut; trailing yield reflects what was actually paid.