Dividend yield calculator
Dividend yield from price and payout, plus the payout ratio and the price for a target yield.
- ๐บ๐ธ US federal & state rules
Dividend yield
4%
$2.40 a year on a $60.00 share
- Yearly dividend per share
- $2.40
- Income per $10,000 invested
- $400.00 a year
- Payout ratio
- 60%
- Price for a 5% yield
- $48.00
This is an example. Enter your numbers above and press the button to see your own result.
- This is a trailing or forward yield depending on which dividend you enter. A very high yield often means the price fell because the market expects a cut.
Show the math
| Yearly dividend | $0.60 ร 4 payments = $2.40 |
|---|---|
| Yield | $2.40 รท $60.00 = 4% |
| Payout ratio | $2.40 รท $4.00 EPS = 60% |
| Target price | $2.40 รท 5% = $48.00 |
What to do next
How it works
Yield is the yearly dividend per share divided by the current price. If you enter one payment, it is multiplied by the number of payments in a year first.
With earnings per share, the calculator adds the payout ratio. With a target yield, it shows the price at which the same dividend would give that yield.
Things to keep in mind
A trailing yield uses the dividends paid in the past 12 months. A forward yield uses the current rate times the number of payments. Fund quote pages may show either one, so check which.
Frequently asked questions
How do you calculate dividend yield?
Divide the yearly dividend per share by the share price. A stock paying $2 a year at $50 has a 4% yield.
What if the company pays quarterly?
Multiply one payment by 4 first. A $0.25 quarterly dividend is $1 a year, which is a 2.5% yield on a $40 stock.
What is a payout ratio?
The share of earnings paid out as dividends. Paying $2 against $4 of earnings per share is a 50% payout ratio. Above 100% means the dividend is larger than profits.
Is a high dividend yield good?
Not by itself. Yield rises when the price falls, so a very high yield can be a sign the market expects a dividend cut.