Dividend yield is the annual dividend per share divided by the share price, expressed as a percentage: a stock trading at $45 that pays $0.30 each quarter distributes $1.20 a year, a yield of 2.7 percent. The yield moves inversely with the price — the same payout on a cheaper share is a higher yield — so a striking yield can signal a generous payout or a fallen price, and the number alone does not say which.
Dividend Yield Calculator — payout, yield & income
$0.30 paid quarterly on a $45 share, holding 100 shares.
- Annual dividend per share
- $1.20
- Annual income on your shares
- $120.00
Quick examples
How it's calculated
- Annual dividend = per-payment dividend × payments per year
- d
- = 0.3
- k
- = 4
- 1.2
- Yield = annual dividend ÷ share price
- P
- = 45
- 0.026667
Compare scenarios
| Share price | Yield |
|---|---|
| $36.00 | 3.3% |
| $40.50 | 3% |
| $45.00 | 2.7% |
| $49.50 | 2.4% |
| $54.00 | 2.2% |
How it works
Two steps of arithmetic. Annualize: the per-payment dividend times the payments per year — quarterly $0.30 becomes $1.20. Divide: annual dividend over share price gives the yield. The income output multiplies the annual dividend by the shares held, turning the ratio into dollars a position actually produces. The price sweep reprices the same payout at 20% and 10% either side of today's share price: the payout never moves, the yield does — which is the honest way to read a yield that looks too good, since a halving price doubles the yield without a single extra cent paid.
Worked example
The anchor is the published resolved case, this page's default: Company A trades at $45 and paid consistent quarterly dividends of $0.30 per share, so the yield is ($0.30 + $0.30 + $0.30 + $0.30) ÷ $45 = 2.7% (CFI). On 100 shares that payout is $120 a year — this calculator's multiplication of the same published figures.
Frequently asked questions
What is dividend yield?
- The annual dividend per share divided by the share price — the cash return a share's payout represents at today's price. It is a snapshot: both the payout and the price move, and the yield moves with them.
Is a higher dividend yield better?
- Not by itself. The sweep shows why: yield rises mechanically as price falls, so an unusually high yield is as often a distressed price as a generous payout — and payouts can be cut. The yield starts the question; the company's ability to keep paying answers it.
How do I calculate my annual dividend income?
- Annual dividend per share times shares held — the income output. 100 shares paying $1.20 a year produce $120; the big-position preset scales the same arithmetic to 1,000 shares. Actual deposits arrive per payment period, a quarter of the annual figure at a time for quarterly payers.
Does the yield include share price growth?
- No — yield counts only the cash dividend. Total return adds price change on top: a 2.7% yielder that gains 5% returned roughly 7.7% that year. The roi calculator combines both when you include dividends in the ending value.
What is a payout frequency and does it matter?
- Most US stocks pay quarterly; some funds pay monthly. Frequency changes the deposit rhythm, not the annual arithmetic — $0.10 monthly and $0.30 quarterly both annualize to $1.20 — though earlier cash can be reinvested slightly sooner.
Why did a stock's yield jump without a dividend announcement?
- Its price fell. Yield is a ratio, and the market prices the denominator daily — the sweep row at 20% below today's price shows exactly the jump a drop produces. Check the price chart before reading a yield spike as generosity.
How accurate is this, and what does it exclude?
- The arithmetic is exact for the figures entered; dividends themselves are declared by boards and can rise, fall, or stop. It excludes special one-time dividends unless you fold them in, taxes on dividend income, and dividend-reinvestment compounding — and a trailing yield differs from a forward one whenever the payout just changed.
How we know this is right
- Last reviewed
- Jul 22, 2026
- Precision
- Rounded to 1 decimal place.
Sources
- Corporate Finance Institute Dividend Yield Formula · Reviewed Jul 22, 2026
- Corporate Finance Institute Return on Investment (ROI) · Reviewed Jul 21, 2026