Calculate your current dividend yield, yield on cost, and total annual income.
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Current Dividend Yield0.00%
Yield on Cost (YOC)0.00%
Total Annual Dividend Income$0.00
Total Portfolio Value$0.00
function calculateDividendMetrics() {
// Get Input Values
var price = document.getElementById('sharePrice').value;
var dividend = document.getElementById('annualDividend').value;
var shares = document.getElementById('sharesOwned').value;
var cost = document.getElementById('costBasis').value;
// Clean and Parse Data
var priceNum = parseFloat(price);
var dividendNum = parseFloat(dividend);
var sharesNum = parseFloat(shares);
var costNum = parseFloat(cost);
// Validation
if (isNaN(priceNum) || isNaN(dividendNum) || priceNum <= 0) {
alert("Please enter a valid Current Share Price and Annual Dividend Amount.");
return;
}
// Handle optional fields with defaults
if (isNaN(sharesNum)) sharesNum = 0;
if (isNaN(costNum) || costNum === 0) costNum = priceNum; // Default to current price if no cost basis entered
// Calculations
// 1. Current Dividend Yield = (Annual Dividend / Current Price) * 100
var currentYield = (dividendNum / priceNum) * 100;
// 2. Yield on Cost = (Annual Dividend / Average Cost Basis) * 100
var yieldOnCost = (dividendNum / costNum) * 100;
// 3. Total Annual Income = Annual Dividend * Shares Owned
var totalIncome = dividendNum * sharesNum;
// 4. Portfolio Value = Current Price * Shares Owned
var portfolioValue = priceNum * sharesNum;
// Display Results
document.getElementById('resCurrentYield').innerHTML = currentYield.toFixed(2) + '%';
document.getElementById('resYOC').innerHTML = yieldOnCost.toFixed(2) + '%';
// Format Currency Outputs
var currencyFormatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('resTotalIncome').innerHTML = currencyFormatter.format(totalIncome);
document.getElementById('resPortfolioValue').innerHTML = currencyFormatter.format(portfolioValue);
// Show Results Container
document.getElementById('resultsArea').style.display = 'block';
}
Understanding Dividend Rate of Return
The dividend rate of return, commonly known as Dividend Yield, is a financial ratio that indicates how much a company pays out in dividends each year relative to its stock price. For income-focused investors, understanding this metric is crucial for building a portfolio that generates consistent passive income.
How It Is Calculated
The calculation is relatively straightforward. It compares the annual dividend amount per share to the current market price of that share. The result is expressed as a percentage.
Dividend Yield = (Annual Dividend per Share / Current Share Price) × 100
For example, if Company X trades at $50.00 per share and pays an annual dividend of $2.50 per share, the dividend yield is 5%.
Current Yield vs. Yield on Cost (YOC)
This calculator provides two distinct metrics, and it is important to understand the difference:
Current Dividend Yield: This is based on the stock's current market price. It tells you the return you would get if you bought the stock today.
Yield on Cost (YOC): This is based on your original purchase price (cost basis). If you bought a stock years ago at a lower price, and the company has raised its dividend, your personal Yield on Cost might be significantly higher than the current market yield. This is a key metric for long-term dividend growth investors.
Interpreting the Results
While a high dividend yield can be attractive, it is not always a sign of a healthy investment. Extremely high yields (often above 10%) can sometimes indicate that the market expects a dividend cut or that the share price has plummeted due to financial trouble. Investors should look at the Payout Ratio (the percentage of earnings paid as dividends) alongside the yield to ensure sustainability.
Using the Calculator
To use the Dividend Rate of Return Calculator above:
Enter the Current Share Price of the stock.
Enter the total Annual Dividend amount per share (sum of all quarterly or monthly payments).
Input the Number of Shares you own to calculate your total passive income.
Input your Average Purchase Price to see your personal Yield on Cost.