Dividend Yield Calculator
Compute the dividend yield and annual/monthly income from your dividend-paying stocks.
Educational only. Dividend yields change; companies can cut or suspend dividends.
Inputs
Results
How dividend yield is calculated
Dividend Yield = (Annual dividend per share / Share price) × 100%. A key metric for income stocks. Rule of thumb: yields above 8% often signal risk of a future dividend cut.
Frequently asked questions
What is a good dividend yield?
Depends on sector. Utilities and consumer staples: 3-5%. REITs: 4-8%. Growth stocks: often 0-2%. Yields above 8% are usually a warning sign.
Should I chase the highest yield?
Not automatically. Very high yields often reflect a falling stock price and anticipated dividend cut. Check the payout ratio and free cash flow first.
What is a safe payout ratio?
Under 60% of earnings is typically comfortable. Above 80% suggests weak coverage and cut risk during a downturn.
More on dividend investing
The glossary covers dividend yield, payout ratios, and the Dividend Aristocrat concept.
Open glossary