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Dividend Yield Calculator
Calculate dividend yield, payout ratio safety, and projected annual income for any stock. Compare yield to the S&P 500 average and 10-year Treasury — with live data for any US-listed ticker.
Inputs
Results
Enter a stock price and annual dividend to see yield
Load a ticker for live dividend data, or enter values manually. Results update instantly.
How to use this dividend yield calculator
Load a ticker or enter data manually
Type any US ticker (e.g. KO, JNJ) and click Load to auto-fill dividend rate, current price, and payout ratio. Or enter the stock price and annual dividend per share manually from any financial data source.
Read the yield and compare to benchmarks
The trailing yield shows what the stock pays today relative to its price. Compare against the S&P 500 average yield (1.3%) and the 10-year Treasury (4.3%) to understand whether the income premium justifies the equity risk.
Check payout ratio safety
The payout ratio gauge shows how much of earnings goes to dividends. Green (under 60%) means ample room for growth. Yellow (60–80%) is moderate. Red (above 80%) means thin coverage. Danger (above 100%) means the dividend exceeds earnings and may be cut.
Project your income
The income table shows annual and monthly income at $1K, $10K, $50K, and $100K investment amounts. Enter your purchase price to see yield on cost — the yield based on what you actually paid, not today's market price.
Dividend yield vs dividend growth
Yield is a snapshot, growth is the story
Dividend yield tells you what a stock pays right now as a percentage of its price. But a 2% yield growing at 10% per year doubles your income roughly every 7 years. A 5% yield with zero growth stays flat forever. The best income portfolios prioritize companies that can grow their payout sustainably — not just the ones with the highest yield today.
This is why Dividend Aristocrats (companies that have raised dividends for 25+ consecutive years) tend to outperform high-yield stocks over long holding periods. The compounding effect of rising dividends is powerful.
When high yield is a warning sign
A stock yielding 8–10% often isn't a gift — it's a signal. The market has driven the share price down, which pushes the yield up arithmetically. The market is usually pricing in one of three things: an earnings decline, a dividend cut, or structural problems with the business. Check payout ratio and earnings trends before buying any stock yielding above 6%.
The yield trap is real: investors buy for the high yield, the dividend gets cut 6 months later, and the stock drops another 20%. Always ask why the yield is high before treating it as an opportunity.
Yield on cost: the buy-and-hold metric
Yield on cost measures your personal dividend yield based on what you originally paid for the stock — not today's market price. If you bought a stock at $40 and it now pays $3/share in annual dividends, your yield on cost is 7.5%, even if the current market yield is only 3% (because the stock rose to $100).
This metric rewards patience. Long-term holders of dividend growers often see their yield on cost reach double digits — far above anything available in the current market. It's the core metric of the dividend growth investing strategy.
Dividends vs bonds: the income comparison
With the 10-year Treasury yielding ~4.3%, stocks need to offer a compelling reason to own them for income. Dividend stocks have one key advantage bonds don't: the dividend can grow. A stock yielding 3% today with 8% dividend growth will out-earn a 4.3% bond within 5 years — and keep compounding after that.
The trade-off is volatility. Bond coupons are contractual; dividends can be cut. That's why payout ratio matters — it's the safety margin for income investors choosing stocks over bonds.
Frequently asked questions
What is a good dividend yield?
The S&P 500 averages about 1.3%. Yields of 2–4% from established companies are generally attractive and sustainable. Above 5–6% may signal risk — check payout ratio and earnings before buying.
How do you calculate dividend yield?
Dividend yield = (Annual Dividend Per Share ÷ Stock Price) × 100. A stock at $50 paying $2/year yields 4.0%. Trailing yield uses the last 12 months of actual dividends. Forward yield uses the declared annual rate.
What is dividend yield vs dividend growth?
Yield is current income as a percentage of price — a snapshot. Growth is the rate dividends increase over time. A 2% yield growing at 10% per year beats a stagnant 5% yield within a decade. The best income stocks balance both.
Is a high dividend yield good?
Not always. High yields (above 6–8%) often result from a dropping stock price. The market may be pricing in a dividend cut. Check payout ratio: above 80–100% means the company is paying more than it earns — unsustainable.
What is payout ratio?
Payout ratio = (Dividends Paid ÷ Net Income) × 100. Below 60% is safe. 60–80% is moderate. Above 80% is high risk. Above 100% means the company pays more in dividends than it earns — a cut is likely.