Dividend Yield Calculator
Dividend yield, annual income from a holding, and the payout ratio.
Results
Dividend yield
4.2857
%
Annual income
600.00
Amount invested
14,000.00
Payout ratio
50.00
%
What this tool does
Yield falls when the price rises, so a very high yield often means the market has marked the share down rather than that the company is generous. The payout ratio is the sanity check: a company paying out more than it earns is paying from reserves, and that cannot continue indefinitely.
Formula
yield = annual dividend ÷ price × 100
Variables
| Symbol | Meaning | Unit |
|---|---|---|
dv | Annual dividend per share | — |
pc | Share price | — |
ns | Number of shares | — |
ep | Earnings per share | — |
Y | Dividend yield | % |
IN | Annual income | — |
IV | Amount invested | — |
PO | Payout ratio | % |
Worked example
- Annual dividend per share1.2
- Share price28
- Number of shares500
- Earnings per share2.4
- Dividend yield4.2857 %
- Annual income600.00
- Amount invested14,000.00
- Payout ratio50.00 %
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- Tax rates and rounding rules differ between countries and sometimes between regions. Use the rate that applies to your invoice.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.