Dividend Yield Explained (Simple)
Dividend yield helps you understand how much dividend income you earn from a stock relative to its price. It’s often used to compare income-focused investments. A higher yield can look attractive, but you should also consider the company’s stability and whether the dividend is sustainable.
Dividend Yield Formula
Dividend Yield (%) = (Annual Dividend Per Share ÷ Share Price) × 100
What This Calculator Shows
- Yield % — income return relative to share price.
- Annual dividend income — estimated yearly payout from your shares.
- Monthly estimate — annual income ÷ 12 (rough planning number).
- Position value — shares owned × share price.
Related Tools
- Compound Interest Calculator — grow reinvested returns.
- Investment Calculator — project future value.
- Capital Gains Tax Estimator — estimate CGT (US/UK).
- Percentage Calculator — quick % comparisons.
Frequently Asked Questions
1) Is dividend yield guaranteed?
No. Companies can raise, reduce, or suspend dividends. Yield changes as price and dividends change.
2) Why does a very high yield sometimes mean risk?
A high yield can happen if the share price falls sharply or if the payout is not sustainable.
3) Does this include taxes?
No. This calculator estimates gross dividend income. Your actual take-home depends on taxes in your country.
4) What if dividends are paid quarterly?
If you only know the dividend per quarter, select “Quarterly (x4)” so the tool annualizes it.
5) Can I use this for ETFs?
Yes. If you know the dividend per share/unit and the price, the same yield logic applies.