Dividend Yield Calculator
Dividend yield is the single most widely used measure of a stock's income-generating ability, but it only tells part of the story. This calculator goes further by showing four related metrics: the standard dividend yield on the current price, the yield on cost based on what you actually paid, the annual income from a benchmark 100 shares, and the annual and monthly income from the exact number of shares you own. Enter the current stock price, the quarterly dividend per share (the most common payment frequency for US stocks), your original purchase price for yield on cost, and your share count. Yield on cost is particularly useful for long-term investors because it shows the income return on your actual capital invested, which grows over time as companies increase their dividends. A stock you bought at $40 that now trades at $50 and has raised its dividend over the years may show a current yield of 3% but a yield on cost of 6% or more. Both numbers are meaningful depending on whether you are evaluating the current opportunity or your historical decision.
Formulas
Annual dividend = quarterly dividend × 4
Dividend yield = (annual dividend / current stock price) × 100
Yield on cost = (annual dividend / original purchase price) × 100
Annual income (100 shares) = annual dividend × 100
Annual income (your shares) = annual dividend × shares owned
Monthly income = annual income (your shares) / 12
Dividend yield and yield on cost use the same annual dividend figure but different denominators: current price versus your purchase price. Yield on cost is always fixed once you buy the shares (assuming the dividend does not change), while current yield fluctuates with the stock price. Monthly income is an approximation: actual payments depend on the dividend schedule and ex-dividend dates.
How to use this calculator
- Enter the quarterly dividend per share. This is the cash dividend declared by the company each quarter. You can find this on the company's investor relations page or via the SEC EDGAR filing system.
- Enter the current stock price. Use the current market price from any financial data provider.
- Enter your original purchase price per share. This is the price you paid when you bought the shares, used to calculate yield on cost.
- Enter the number of shares you own. The calculator shows annual and monthly income based on this share count.
- Review the results: dividend yield shows the income return at the current price; yield on cost shows the return on your actual invested capital; annual and monthly income figures show the cash flow you can expect from the position.
Frequently asked questions
What is dividend yield?
Dividend yield is the annual dividend payment divided by the current stock price, expressed as a percentage. It represents the cash return on investment from dividends alone, excluding capital gains. A stock priced at $50 paying $2.00 per year in dividends has a yield of 4%. Yield changes whenever the stock price or the dividend changes.
What is yield on cost?
Yield on cost (YOC) is the annual dividend divided by the price you originally paid for the shares, not the current price. If you paid $40 for a stock now trading at $50 that pays $2.00 annually, your yield on cost is 5% (compared to the current yield of 4%). YOC increases over time as companies raise their dividends, which is why long-term dividend investors focus on it.
What is a good dividend yield?
There is no universal answer. Yields vary widely by sector: utility and real estate investment trusts (REITs) typically yield 3% to 6%, while growth technology companies may pay 0% to 1%. A very high yield (above 8% to 10%) can be a warning sign that the market expects the dividend to be cut. Compare yields within the same sector rather than across sectors.
How often do companies pay dividends?
Most US companies that pay dividends do so quarterly (four times per year). Some pay monthly (common for REITs and certain funds), semi-annually, or annually. Special dividends are one-time payments separate from the regular schedule. This calculator uses quarterly payments as the default input since that is the most common frequency.
Are dividends taxed differently than regular income?
Qualified dividends (from US corporations and qualifying foreign corporations, held for the required period) are taxed at the long-term capital gains rate (0%, 15%, or 20% depending on your income). Ordinary (non-qualified) dividends are taxed at ordinary income rates. Dividends earned inside a tax-advantaged account (IRA, 401k) are not taxed until withdrawal (traditional) or not taxed at all (Roth).
Official sources
- SEC Investor.gov: Dividends (definition and investor guidance from the Securities and Exchange Commission)
- IRS: Qualified Dividends (Topic 404) (tax treatment of qualified versus ordinary dividends)
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.