Dividend yield calculator

The quick maths behind every yield figure on this site: divide the annual dividend per share by the share price. Add a position size to turn that yield into actual dollars of income.

Your result

Dividend yield

3.5%

annual dividend ÷ price

Shares owned

200

on your investment

Annual income

$350

before tax

Monthly income

$29

average per month

Want growth, reinvestment and contributions on top of this? Run the full dividend calculator →

How dividend yield works

Dividend yield answers one question: for every dollar you invest today, how many cents of dividend income arrive each year? It is the maths behind every yield figure on this site.

1

The formula

Annual dividend per share ÷ share price × 100. That is all a yield ever is — income measured against the price you pay for it.

2

Price moves, yield follows

The dividend rarely changes day to day, but the price does. So the yield rises when shares get cheaper and falls when they get expensive — the same payout, a different entry point.

3

Spot the yield trap

A very high yield often means a share price that has collapsed because the market expects a cut. A generous dividend and a distressed price look identical in the yield column.

# worked example
dividend yield = $4.00 ÷ $100 × 100 = 4.00%
same $4 dividend at $80 = a 5.00% yield · at $125 = 3.20%
250 shares × $4 a share = $1,000 of income a year

That last step is why experienced income investors check the dividend growth record and how comfortably earnings cover the payout before chasing a big number. A moderate yield that grows every year usually beats a huge yield that gets cut. For a fund built exactly on that idea, see the SCHD dividend calculator.

Frequently asked questions

Quick answers about dividend yield.

What is a good dividend yield?

Most mature dividend payers sit somewhere between 2% and 4.5%. Below that, income is modest but growth often does the heavy lifting; well above 5–6%, the payout deserves extra scrutiny before you rely on it.

What is the difference between yield and yield on cost?

Yield uses today’s price. Yield on cost uses the price you paid, so it rises as the dividend grows even if the market price stands still. We explain it in depth in the yield on cost guide.

How do I turn a yield into monthly income?

Multiply the amount invested by the yield to get annual income, then divide by 12 for a monthly average. The monthly cashflow calculator does exactly this and shows how the payments actually land through the year.

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