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Dividend Yield Calculator
Calculate a stock's dividend yield, compare it against benchmark rates, or reverse-calculate the required payout to hit a target yield.
Calculate Yield %
Find Required Payout
$
$
Dividend Yield
0.00%
Evaluating...
Comparison to Benchmarks
S&P 500 Avg (~1.5%)
Target Stock
High Yield (5%+)
%
$
Required Annual Dividend
$0.00
Per share, per year
How it works
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Dividend Yield % = (Annual Dividend / Share Price) × 100
Reverse:
Required Dividend = Share Price × (Target Yield % / 100)
Reverse:
Required Dividend = Share Price × (Target Yield % / 100)
Examples
- Stock A: Pays $2.00/year, Price is $50. Yield = (2.00 / 50) = 4.0%
- Stock B: Pays $0.50/quarter ($2.00/year), Price is $100. Yield = 2.0%
- Targeting 5% yield on a $60 stock: Required dividend = $60 × 0.05 = $3.00/year.
Frequently Asked Questions
What causes a dividend yield to change?
Because yield is a function of both the payout and the stock price, it changes constantly. If a stock price drops but the dividend stays the same, the yield goes UP. If the stock price rises, the yield goes DOWN.
Is a higher yield always better?
Not necessarily. A very high yield (e.g., >8%) can be a warning sign (a "yield trap"). It often means the stock price has plummeted because investors expect the company will soon be forced to cut its dividend due to financial trouble.
How does this compare to a savings account?
Savings accounts pay interest, while stocks pay dividends. Stock dividends are not guaranteed and your principal (the share price) can lose value. However, stocks offer the potential for capital appreciation (price growth) and dividend growth over time.