Dividend Yield Calculator

💵 Dividend Yield Calculator

Work out dividend yield and the income your investment generates

Dividend Yield: annual dividend income is ₹30,000, based on the entered inputs.

₹30,000

₹30,000 annual dividend income

Investment Amount₹10,00,000

Dividend Yield3%

Annual Dividend Growth8%

Years Held10 yr

Monthly Income

₹2,500

Total Dividends Over Period

₹4,34,597

Yield on Cost (final year)

Save this calculation — sign up free to keep it and track it against your real plan.

Formula

Dividend Yield % = (Annual Dividend per Share ÷ Current Market Price) × 100

Worked example

Input	Value
Investment Amount	₹10,00,000
Dividend Yield	3%
Annual Dividend Growth	8%
Years Held	10 yr
Annual Dividend Income	₹30,000
Monthly Income	₹2,500
Total Dividends Over Period	₹4,34,597
Yield on Cost (final year)	6%

What dividend yield tells you (and hides)

Dividend yield = annual dividend per share ÷ current share price. It converts a company’s cash payout into a comparable percentage — “this stock pays 3% a year in cash” — which the calculator computes along with the rupee income your holding generates.

The trap every income-seeker walks into once: *yield rises when the price falls*. A 9% yield is more often a company whose price has collapsed (with a dividend cut coming) than a generous healthy business — the market rarely gives away safe 9% cash. Check the payout ratio (dividends ÷ profits: above ~70-80% is strained), whether dividends grew through bad years, and whether earnings cover the payout. Yield is a starting filter, never the decision.

ExampleA PSU stock at ₹100 paying ₹6 (6% yield) vs an FMCG stock at ₹100 paying ₹2 (2%) that raises its dividend ~12% a year: within a decade the FMCG payout crosses ₹6 on your original cost — with the share price compounding alongside. “Yield on cost” rewards dividend growth; headline yield rewards only today.

Common mistakeIgnoring tax: dividends are added to your income and taxed at slab (plus 10% TDS beyond ₹10,000/year from a company) — a 30%-bracket investor keeps just 4.2% of a 6% yield. For wealth-building (vs income-needing) investors, growth+SWP is usually more tax-efficient than chasing payouts.

✓ You learnedYield = dividend ÷ price — useful for comparing income, dangerous as a buy signal since falling prices inflate it. Prefer moderate, growing, well-covered dividends over high static ones, and remember slab tax makes dividends an expensive form of return for high earners.

FAQs

Is a high dividend yield good?

Suspicious above ~5-6%: it usually signals a fallen price (trouble ahead) or a payout the profits can’t sustain. Genuinely attractive dividend stocks pair a moderate yield (1.5-4%) with a long record of raising it and a payout ratio leaving room to grow. If the yield looks like an FD rate, ask what the market knows.