How to Calculate Dividend Yield: Formula and Inputs

Annualising dividend payments

Enter the current share price, annual dividend per share and number of shares owned. Dividend yield divides the annual dividend by the share price, while annual income multiplies the dividend by the holding size.

The monthly figure is the annual income divided by 12, so it is an average rather than a payment schedule. Changing the share price changes yield and position cost but does not change income unless the dividend input also changes.

Income per share relative to market price

From one payment to annual position income

The default inputs convert the stated dividend frequency into an annual dividend and compare it with the entered price. Position quantity is then used to estimate annual cash income.

Yield percentage versus cash received

Yield is useful for comparing income relative to price, while annual income shows the amount associated with the entered share count. Neither result says whether the dividend will continue.

Why a quoted yield can become stale

A high trailing yield can reflect a falling share price or an outdated dividend. Confirm whether the dividend input is annual, quarterly or monthly before comparing results.

• Each scheduled dividend payment equals the amount entered.
• The payment frequency remains constant for a full year.
• Tax, withholding, fees and dividend changes are excluded.

Calculations related to dividend yield

The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.