Dividend Yield Calculator
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Current Dividend Yield4.00%
Yield On Cost5.00%
Annual Dividend$2.00
The Dividend Yield Calculator converts a stock annual dividend and price into a percentage return, making it easy to compare income-paying shares on a like-for-like basis. It also reports yield on cost, which measures the dividend against the price you actually paid rather than the price today. Both figures are shown to two decimal places.
Formula
currentYield = annualDividend / currentPrice × 100; yieldOnCost = annualDividend / costPrice × 100
- annualDividend
- Total dividend paid per share in a year
- currentPrice
- Current market price per share
- costPrice
- Price you originally paid per share
How it works
- Enter the total dividend a share pays over a year, the current market price, and the price you originally paid per share.
- The calculator divides the annual dividend by the current price to get the current yield, and by your cost price to get yield on cost, then expresses each as a percentage.
- A falling share price raises the current yield even when the dividend is unchanged, while a low purchase price keeps your yield on cost high.
Worked example
A share pays $3 a year, trades at $100 today, and was bought at $60.
- Current yield = 3 ÷ 100 × 100 = 3.00%.
- Yield on cost = 3 ÷ 60 × 100 = 5.00%.
Current yield 3.00% and yield on cost 5.00%.
Frequently asked questions
- What is the difference between dividend yield and yield on cost?
- Dividend yield measures the dividend against the current share price, so it reflects what a new buyer would earn today. Yield on cost measures the same dividend against the price you originally paid, showing how your personal income return has grown.
- Is a higher dividend yield always better?
- Not necessarily. An unusually high yield can signal a falling share price or a dividend at risk of being cut. Always check that earnings comfortably cover the payout before chasing yield.
- Should I use the annual or quarterly dividend?
- Enter the full annual dividend per share. If a company pays quarterly, multiply the latest quarterly payment by four, or sum the trailing four payments for an actual-paid figure.