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Dividend Yield Calculator
Calculate trailing and forward dividend yield, projected annual income at any investment amount, payout ratio safety, and yield on cost — with live data for any US-listed ticker.
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Dividend yield vs dividend growth
Dividend yield: income today
Dividend yield tells you how much cash income you receive per dollar invested at today's price. A 3% yield on a $10,000 investment delivers $300/year in dividends. Yield is useful for comparing income across stocks — but it's a snapshot, not a forecast. A high yield today means nothing if the company cuts the dividend next quarter.
Yield changes whenever the stock price moves. A $100 stock paying $3/year yields 3%. If the stock drops to $60 with no dividend change, the yield jumps to 5% — not because the company got more generous, but because the market is pricing in risk. Always pair yield with payout ratio to separate real opportunity from distress.
Dividend growth: income tomorrow
Dividend growth rate matters more than yield for long-term investors. A stock yielding 2% today but growing dividends at 10%/year will pay more income than a 4% yielder growing at 2% — the crossover happens in about 8 years. Dividend growth is a proxy for earnings growth and management confidence in the business.
The best dividend stocks combine a reasonable starting yield (2–3%) with a long track record of consistent increases. Dividend Aristocrats — S&P 500 companies with 25+ consecutive years of increases — have historically outperformed the broader index with lower volatility. Use the DRIP calculator to model how reinvested dividends compound over time.
Frequently asked questions
What is dividend yield?
Dividend yield = annual dividend per share ÷ stock price × 100. A stock at $100 paying $3/year yields 3%. It measures cash income per dollar invested.
What is a good dividend yield?
The S&P 500 averages ~1.3%. Yields of 2–4% from established companies are generally attractive. Above 6% can signal risk — always check the payout ratio before chasing high yield.
How is dividend yield calculated?
Trailing yield uses dividends paid over the last 12 months. Forward yield uses the declared annual rate. Both divide by the current stock price. Because price moves daily, yield fluctuates even with a fixed dividend.
What is yield on cost?
Yield on cost = current annual dividend ÷ your original purchase price. If you bought at $50 and the stock now pays $4/year, your YOC is 8% — even if the current yield is only 3%. It shows how dividend growth compounds your income.
Is a high dividend yield always good?
No. High yields often result from a falling stock price — the market may be pricing in a dividend cut. Payout ratios above 80% are a warning. Always verify the dividend is covered by earnings and free cash flow.