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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.

Dividend yield2.7%
Annual dividend per share
$1.20
Annual income on your shares
$120.00

Quick examples

How it's calculated

  1. Annual dividend = per-payment dividend × payments per yearD=d×kD = d \times k
    d
    = 0.3
    k
    = 4
    1.2
  2. Yield = annual dividend ÷ share priceY=DPY = \frac{D}{P}
    P
    = 45
    0.026667

Compare scenarios

Side by side across the compared columns.
Share priceYield
$36.003.3%
$40.503%
$45.002.7%
$49.502.4%
$54.002.2%
Dividend yield2.7%

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.
Read our methodology

Sources