Calculate your stock's annual yield and projected income.
Annually
Semi-Annually
Quarterly
Monthly
Dividend Yield0.00%
Annual Dividend Per Share$0.00
Total Annual Income$0.00
Understanding Dividend Yield
Dividend yield is a financial ratio that tells you how much a company pays out in dividends each year relative to its stock price. It is expressed as a percentage and is a key metric for "Income Investors" who prioritize cash flow over capital gains.
The Formula
The calculation is straightforward. To find the annual dividend yield, we use the following formula:
Dividend Yield = (Annual Dividends Per Share / Current Stock Price) × 100
Realistic Example:
Imagine you own shares of "Blue Chip Corp". The current stock price is $120.00. The company pays a $0.90 dividend every quarter (4 times a year).
Annual Dividend = $0.90 × 4 = $3.60
Dividend Yield = ($3.60 / $120.00) × 100 = 3.00%
Why Yield Matters to Investors
A high dividend yield might look attractive, but it can sometimes be a "yield trap." This happens when a company's stock price crashes due to poor fundamentals, making the yield look artificially high. Conversely, a very low yield might belong to a fast-growing company that reinvests its profits instead of paying them out.
Factors to Consider
Payout Ratio: Is the company earning enough to cover the dividend? A ratio over 80-90% might be unsustainable.
Dividend Growth: Look for companies that have a history of increasing their payouts year over year.
Ex-Dividend Date: You must own the stock before this date to receive the upcoming dividend payment.
function calculateDividendYield() {
var stockPrice = parseFloat(document.getElementById("stockPrice").value);
var divAmount = parseFloat(document.getElementById("divAmount").value);
var frequency = parseFloat(document.getElementById("frequency").value);
var shares = parseFloat(document.getElementById("sharesOwned").value);
var resultDiv = document.getElementById("yield-result");
var incomeWrapper = document.getElementById("incomeWrapper");
// Validation
if (isNaN(stockPrice) || stockPrice <= 0) {
alert("Please enter a valid stock price greater than 0.");
return;
}
if (isNaN(divAmount) || divAmount 0) {
var totalIncome = annualDividend * shares;
document.getElementById("resTotalIncome").innerHTML = "$" + totalIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
incomeWrapper.style.display = "block";
} else {
incomeWrapper.style.display = "none";
}
// Show the result container
resultDiv.style.display = "block";
// Smooth scroll to result
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}