Calculate dividend yield percentage and annual dividend income from stocks
Quick Examples:
Annual return from dividends
High Yield: Above 5% is considered excellent for dividend investors
Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It's expressed as a percentage and is calculated using the formula:
For example, if a stock trades at ₹1,000 and pays an annual dividend of ₹50, the dividend yield is 5%. This means you earn ₹5 for every ₹100 invested annually through dividends alone.
Regular cash flow without selling shares
Consistent dividends signal financial stability
High yields suit retirees and income investors
Sustainability: Check if the company can maintain dividend payouts from earnings
Growth vs Income: High-growth companies often pay lower dividends
Dividend Aristocrats: Look for companies with 25+ years of consistent dividend increases
Tax Implications: Dividends are taxable; plan accordingly with your tax bracket