Dividend Yield Calculator

Calculate dividend yield percentage and projected income with optional dividend growth rate.

Dividend Yield
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%
Annual Income (Year 1)
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$
5-Year Income (Year 5)
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$
10-Year Income (Year 10)
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$
5-Year Cumulative Income
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$

How the Dividend Yield Calculator Works

Dividend yield is calculated by dividing the annual dividend per share by the current stock price, expressed as a percentage. Your annual income equals the dividend per share multiplied by the number of shares you own. The growth projections use compound annual growth rate (CAGR): future annual income equals current income multiplied by (1 + growth rate)^years. This shows how dividend income can grow if the company consistently raises its payout. The 5-year cumulative figure sums up all annual income over five years at compounding dividend levels, giving a realistic picture of total cash received. Dividend growth investing is a popular strategy among income investors seeking rising passive income over time.

Frequently Asked Questions

What is dividend yield?
Dividend yield = (annual dividend per share ÷ stock price) × 100. A $2 dividend on a $40 stock yields 5%.
Is a high dividend yield always good?
Not necessarily. A very high yield (above 8–10%) can signal a falling stock price or an unsustainable dividend. Always check the payout ratio too.
How often are dividends paid?
Most US stocks pay dividends quarterly. Some pay monthly (REITs, certain ETFs) or annually. The calculator uses annual totals.
What is a good dividend yield?
The S&P 500 average is around 1.5–2%. Income investors often target 3–5%. REITs can yield 5–8%.

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