Dividend Yield Calculator

Calculate dividend yield, payout ratio and yield on cost.

Please note: For information only, not investment advice. Share prices can fall as well as rise and past performance does not predict future results.

What the Dividend Yield Calculator does

Dividend yield is annual dividend divided by share price. Yield on cost measures the same dividend against what you originally paid, which rises over time if the company grows its payout. The payout ratio shows how much of earnings funds the dividend — the key test of whether it can continue.

Formula

Dividend yield = Annual dividend ÷ Share price × 100
Yield on cost = Annual dividend ÷ Purchase price × 100
Payout ratio = Dividend per share ÷ Earnings per share × 100

Inputs explained

Input	Unit	Required	Notes
Annual dividend per share	selected currency	Yes	Accepts more than 0.
Current share price	selected currency	Yes	Accepts more than 0.
Your purchase price	selected currency	Optional	Optional — shows yield on cost. Accepts 0 or more.
Earnings per share	selected currency	Optional	Optional — shows the payout ratio. Accepts 0 or more.
Currency	one of 10 options	Optional	—

How to use it

Choose Currency.
Enter Annual dividend per share and Current share price.
Optionally add Your purchase price and Earnings per share.
Select Calculate.

Worked example

A $2.40 annual dividend on a $60 share, bought at $40, with $4.00 EPS.

Dividend: 2.40
Price: 60
Purchase: 40
EPS: 4.00

Yield 4%, yield on cost 6%, payout ratio 60% — sustainable with room to grow.

Frequently asked questions

What payout ratio is sustainable?

Below 60% generally leaves room for reinvestment and dividend growth. Above 100% means the company is paying out more than it earns, which cannot continue indefinitely.

Why does yield on cost matter?

It shows what your original investment now yields. A stock bought at a 3% yield that has doubled its dividend now yields 6% on your cost, regardless of the current market yield.