⚠️ Important: Financial figures generated here are for planning purposes. Actual results may vary based on market conditions and individual circumstances.
What is Dividend Yield Calculator?
Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is a key metric for income-focused investors.
How it Works
Formula: $ Yield = \frac{\text{Annual Dividend per Share}}{\text{Price per Share}} \times 100 $
Step-by-Step Guide
- Annual Dividend – Total dividends paid per year.
- Stock Price – Current market price.
- Result – Percentage yield.
Example
Input: $2 Dividend, $50 Price
Result: 4.00% Yield
FAQ
What is a good yield?
Typically 2% to 6% is considered healthy. >10% is risky.
Yield vs Dividend Rate?
Rate is the dollar amount ($2); Yield is the percentage (4%).
Trailing vs Forward?
Trailing uses past payouts; Forward uses projected payouts.
Payout Ratio?
Dividends / Earnings. Keeps yield sustainable.
Ex-dividend date?
Must own stock before this date to get paid.
Conclusion
A high yield can be attractive, but extremely high yields may indicate a dropping stock price or unsustainable payouts (dividend trap). Always check the Payout Ratio alongside yield.