CalculatorBolt

Dividend Yield Calculator

Calculate the dividend yield and income potential for any stock or ETF investment. Our calculator determines yield percentage based on current price and dividend payouts, while providing yield-on-cost analysis and future projections based on growth rates. Make informed dividend investing decisions with comprehensive metrics and benchmark comparisons.

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How it works

Our calculator computes dividend yield by dividing the annual dividend amount by the current stock price. It then extends this analysis with yield-on-cost calculations using your purchase price, projects future yields based on dividend growth rates, and compares your investment against sector benchmarks. The tool helps investors evaluate income potential, total return expectations, and dividend sustainability metrics.

Inputs explained

  • Stock Price: Current market price per share of the security
  • Dividend Amount: Annual dividend payment per share (or quarterly/monthly with automatic conversion)
  • Number of Shares: Your current or planned position size
  • Purchase Price: Original cost basis for yield-on-cost calculations
  • Dividend Growth Rate: Expected annual percentage increase in dividends
  • Sector Benchmark: Industry comparison standard for context

Calculate Your Dividend Yield

Enter amount per selected frequency

Your Results

Dividend Yield
0.00%
Annual Income
$0.00
Yield on Cost
0.00%
Projected Yield (5Y)
0.00%
Benchmark Comparison
N/A
Metric Current Projected (5Y) Sector Avg

Some brokers charge fees for dividend reinvestment

Example

An investor owns 100 shares of a stock with these parameters:

  • Current price: $50.00 per share
  • Annual dividend: $2.00 per share ($0.50 quarterly)
  • Original purchase price: $40.00 per share
  • Expected dividend growth: 4% annually

Results:

  • Current dividend yield: 4.00%
  • Yield on cost: 5.00%
  • Annual dividend income: $200.00
  • Projected yield in 5 years: 4.88% (assuming 4% dividend growth)

Tips & notes

  • High yields aren't always better - yields above 8-10% may indicate financial distress or unsustainable payouts
  • Consider the payout ratio (dividends/earnings) to assess dividend sustainability
  • Yield on cost becomes more important than current yield for long-term dividend growth investors
  • Dividend aristocrats (companies with 25+ years of dividend increases) often provide reliable income with moderate growth
  • Reinvesting dividends significantly accelerates wealth accumulation through compounding

FAQs

A "good" yield varies by sector and market conditions. Generally, 2-4% is considered healthy for established companies, while utilities and REITs often yield 4-6%. Yields above 8-10% warrant scrutiny as they may signal financial trouble.

Dividend yield uses the current stock price in its calculation, while yield on cost uses your original purchase price. Long-term investors often focus on yield on cost as it reflects their actual return on investment.

Multiply the quarterly dividend amount by 4 to get the annual dividend, then divide by the current stock price and multiply by 100 to get the percentage yield.

No. Companies can reduce or eliminate dividends at any time, especially during financial difficulties. Even traditionally stable dividend payers can cut payments during economic crises.

Dividend growth compounds your income over time. A stock with a 3% yield and 6% dividend growth will provide more income after 12 years than a stock with a 5% static yield.

Disclaimer

Calculator results are estimates for informational purposes only. Past dividend performance doesn't guarantee future results. Dividend policies can change at any time based on company performance, economic conditions, and board decisions. CalculatorBolt is not a financial advisor. Consult with a qualified financial professional before making investment decisions. CalculatorBolt is not responsible for any financial losses resulting from the use of this calculator.

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