Dividend Yield Calculator

Dividend yield is the annual dividend expressed as a percentage of the share price — what the income stream is worth relative to what the shares cost today. This tool calculates it, and if you add your own cost per share it also gives your yield on cost, which is the more useful number once you have held a position for a while. Enter a share count to see the income in money rather than percentages, and earnings per share to get the payout ratio.

Both are correct and they answer different questions. The 3.50% is what a new buyer gets and is the only figure worth using to compare this stock with another one today. The 5.25% describes what your original capital is earning. Yield on cost rises over time in a company that keeps raising its dividend — it is not a sign the stock is currently cheap.

• Under 40% — comfortable cover, with room to keep raising the dividend.
• 40–60% — typical for a mature, stable business.
• 60–80% — sustainable for utilities and consumer staples with predictable cash flow, tight for anything cyclical.
• Over 100% — the company is paying out more than it earns, funding the gap from cash reserves or borrowing. Sometimes temporary, often the prelude to a cut.
• REITs are the exception: they are legally required to distribute most of their income, so payout ratios above 80% are normal. Compare against funds from operations rather than earnings.

Yield moves inversely with price. A stock whose price has halved shows double the yield — not because the dividend improved, but because the market expects it to be cut. A yield far above the sector norm is a question to investigate, not a bargain to buy. Check whether the dividend is covered by earnings and cash flow, and whether the company has cut before.

A calculation tool, not investment advice. A dividend is a company decision, not a contract — it can be reduced or stopped at any time.