Dividend Yield Explained: How to Measure Income From Shares
Dividends turn share ownership into regular income. This guide explains how to work out what you receive and what the yield means.
What is the Dividend Calculator?
This calculator takes the number of shares you own and the dividend paid per share each year to find your total annual dividend. It also works out the dividend yield, which is the dividend per share divided by the current share price, times 100. Yield lets you compare the income from different shares, whatever their price.
How to use it
- Enter how many shares you own.
- Enter the annual dividend per share and the current price per share.
- Press Calculate to see your annual dividend and the dividend yield.
Worked example
Own 100 shares paying 2 per share each year, with a share price of 50. The tool gives an annual dividend of 200 and a dividend yield of 4%.
How do you calculate dividend income and yield?
Multiply the number of shares by the dividend paid per share to get your total annual dividend. Then divide the dividend per share by the share price and multiply by 100 to get the yield as a percentage. The first number tells you the cash you receive, while the yield tells you how generous that cash is relative to the price.
Frequently asked questions
What is dividend yield?
It is the annual dividend per share expressed as a percentage of the share price. A yield of 4% means you receive 4 in dividends each year for every 100 of share price.
Are dividends guaranteed?
No, companies can raise, cut or stop dividends depending on their profits and plans, so treat the result as an estimate based on the dividend you entered.