Savings and Interest Rate Calculator

Dividend Yield Calculator

Calculate your investment's annual return from dividends

Dividend Yield 0.00%
Annual Income $0.00

Understanding Dividend Yield

The dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its stock price. It is a key metric for income-focused investors looking to compare the cash flow potential of different stocks.

The Dividend Yield Formula

Dividend Yield = (Annual Dividends Per Share / Current Stock Price) x 100

Example Calculation

If "Company A" pays an annual dividend of $5.00 per share and the stock is currently trading at $100.00, the dividend yield is 5% ($5 / $100). If the stock price drops to $80.00 while the dividend remains the same, the yield would increase to 6.25%.

Why is this important?

  • Income Generation: It helps you estimate how much passive income an investment will generate.
  • Risk Assessment: Unusually high yields (yield traps) may indicate that a company's stock price has crashed or that the dividend payout is unsustainable.
  • Relative Valuation: Compare dividend yields against Treasury bonds or savings account interest rates to evaluate opportunity costs.
function calculateDividendYield() { var annualDiv = parseFloat(document.getElementById('annualDividend').value); var stockPrice = parseFloat(document.getElementById('stockPrice').value); var numShares = parseFloat(document.getElementById('numShares').value); var resultsArea = document.getElementById('resultsArea'); var yieldResult = document.getElementById('yieldResult'); var annualIncomeResult = document.getElementById('annualIncomeResult'); var totalPayoutContainer = document.getElementById('totalPayoutContainer'); if (isNaN(annualDiv) || isNaN(stockPrice) || stockPrice 0) { var totalIncome = annualDiv * numShares; annualIncomeResult.innerText = "$" + totalIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); totalPayoutContainer.style.display = "block"; } else { totalPayoutContainer.style.display = "none"; } resultsArea.style.display = "block"; resultsArea.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

Leave a Comment