| Year | Annual Dividend/Share | Yield on Cost |
|---|
This Dividend Yield Calculator helps you understand the return you get from dividends compared to the stock price you pay. By entering the current stock price, annual dividend per share, and expected dividend growth rate, you can see the yield today and how it may change in the future.
How the Dividend Yield Calculator Works
Dividend yield is calculated as Annual Dividend ÷ Stock Price × 100. If dividends grow every year, your yield on cost (dividends compared to your original investment) will increase over time. This makes dividend-paying stocks attractive for long-term investors.
Example Calculation
Current Stock Price: $150.00
Annual Dividend Per Share: $3.50
Expected Annual Dividend Growth: 5.0%
Results
Current Dividend Yield: 2.33%
10-Year Yield on Cost: 3.80%
Total Dividends in 10 Years: $49.72
Year-by-Year Growth
| Year | Annual Dividend/Share | Yield on Cost |
|---|---|---|
| 0 | $3.50 | 2.33% |
| 1 | $3.68 | 2.45% |
| 2 | $3.86 | 2.57% |
| 3 | $4.05 | 2.70% |
| 4 | $4.25 | 2.84% |
| 5 | $4.47 | 2.98% |
| 6 | $4.69 | 3.13% |
| 7 | $4.92 | 3.28% |
| 8 | $5.17 | 3.45% |
| 9 | $5.43 | 3.62% |
| 10 | $5.70 | 3.80% |
Note: These results are based on assumptions of steady growth. Actual dividends can vary depending on company performance and policy.
Why Use a Dividend Yield Calculator?
It helps investors compare dividend-paying stocks. You can check how much income you might receive over time and see how compounding dividend growth boosts returns. This is useful for retirement planning and passive income strategies.
Frequently Asked Questions (FAQs)
What is dividend yield?
Dividend yield shows how much a company pays in dividends each year compared to its stock price.
What is yield on cost?
Yield on cost is the dividend income divided by the price you originally paid for the stock. It grows over time if dividends increase.
Does dividend yield change?
Yes. Yield changes if the stock price moves or if the company changes its dividend payout.
What is dividend growth?
Dividend growth is the yearly increase in dividends per share. Many companies raise dividends annually.
Is dividend income guaranteed?
No. Companies can cut or stop dividends anytime based on financial conditions.