What's a good dividend yield?
2-4% is typical for stable companies. 4-6% is high yield. Over 6% may indicate risk or unsustainable payout. Compare with the stock's historical yield and sector averages.
Calculator
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Analysis
Interpretation of the current calculator output
Enter values to see detailed analysis and insights.
How to Use
Step-by-step instructions
- 1Enter the current share price
- 2Input the annual dividend per share
- 3Specify the number of shares you own (or plan to own)
- 4Add the expected annual dividend growth rate (%)
- 5Review annual income, yield, and projected growth
Dividend Calculations
Dividend yield measures the annual dividend income as a percentage of the stock price. Annual dividend income is the total cash received from dividends.
Dividend Yield = (Annual Dividend per Share ÷ Share Price) × 100%
Annual Income = Dividend per Share × Number of SharesVariables:
Dividend YieldAnnual dividend as % of share priceDividend per ShareAnnual dividend paid per shareShare PriceCurrent market price per shareDividend GrowthExpected annual increase in dividendsExample
Dividend Stock Investment
Inputs:
Share Price:$100
Dividend per Share:$2.50 annually
Shares Owned:100 shares
Dividend Growth:3% per year
Steps:
- 1.Dividend Yield = ($2.50 ÷ $100) × 100 = 2.5%
- 2.Annual Income = $2.50 × 100 = $250
- 3.Quarterly Income = $250 ÷ 4 = $62.50
- 4.Monthly Income = $250 ÷ 12 = $20.83
- 5.Year 10 Dividend = $2.50 × 1.03^9 × 100 = $326.06
Result:
$250 annual dividend income with 2.5% yield, growing to $326/year in 10 years
Frequently Asked Questions
How often are dividends paid?
Most US companies pay quarterly. Some pay monthly (REITs), semi-annually, or annually. This calculator shows all frequencies based on the annual dividend you enter.
Are dividends guaranteed?
No, companies can cut or eliminate dividends anytime. Look for companies with consistent dividend growth history (Dividend Aristocrats have 25+ years of increases).