Dividend Yield Calculator
Find your dividend yield percentage, project your annual dividend income, and see how reinvesting (DRIP) can grow that income over time.
*Estimates only. Not investment advice. Dividend payments and growth rates are not guaranteed.
See how compounding growth stacks up across your whole portfolio.
Compound Interest Calculator📈 Building Dividend Income
How yield, income, and reinvestment work together to build a growing income stream.
How it Works
Enter the share price and annual dividend to get the yield percentage, then add your share count and a DRIP growth rate to project how your income could compound over the years.
The Formula
Dividend Yield = Annual Dividend per Share ÷ Share Price × 100. Projected Income = Annual Income × (1 + Growth Rate)^Years.
Pro Tip
Don't chase yield alone. Check a company's payout ratio and dividend growth streak — a lower but consistently growing yield often outperforms a high yield at risk of being cut.
Frequently Asked Questions
How is dividend yield calculated? +
Dividend yield equals the annual dividend paid per share divided by the current share price, expressed as a percentage. For example, a stock paying $2 per share annually at a $50 share price has a 4% dividend yield.
What is a good dividend yield? +
Yields between 2% and 6% are generally considered healthy for established companies. Very high yields above 8-10% can signal financial distress or an unsustainable payout, so it's worth checking the payout ratio and dividend history before assuming a high yield is a bargain.
What is DRIP and how does it affect long-term income? +
DRIP stands for Dividend Reinvestment Plan. Instead of taking dividends as cash, they automatically buy more shares, which then generate their own dividends. Over years this compounding effect can meaningfully accelerate the growth of your annual dividend income compared to simply holding a fixed share count.
Are dividends taxed differently than capital gains? +
Qualified dividends in the US are generally taxed at the same preferential rates as long-term capital gains (0%, 15%, or 20% depending on income), while non-qualified (ordinary) dividends are taxed as regular income. Holding period and dividend type both determine which rate applies.
Does dividend yield account for stock price changes? +
No. Dividend yield only reflects cash income relative to price at a point in time. Your total return also depends on whether the share price rises or falls, so a high-yield stock with a declining price can still produce a poor overall return.
How often are dividends typically paid? +
Most US companies pay dividends quarterly, though some pay monthly, semi-annually, or annually. This calculator works from your total annual dividend per share regardless of payment frequency.