# Dividend Yield Calculator

> Dividend yield is the annual dividend per share divided by the share price. A $2.00 dividend on an $80 share is a 2.5% yield; the same $2.00 on a $50 share is 4%. Yield on cost uses what you paid rather than today’s price, and rises every time the dividend is raised.

Formula: yield = annual dividend per share / share price. $2.00 on $80 = 2.5%; $2.00 on $50 = 4%.

## Formula
Yield = Annual dividend per share ÷ Share price × 100%. Yield on cost = this year’s dividend per share ÷ your average purchase price.

## Forward vs. trailing yield
Trailing yield uses the dividends paid over the last twelve months; forward yield uses the latest declared payment multiplied by the number of payments a year. Forward reflects the current rate, which is what this calculator assumes when you enter a per-year dividend.

## Why a high yield can be a trap
Yield rises when the price falls. A stock yielding 9% because its price has halved is usually signalling that investors expect the dividend to be cut. Pair yield with the payout ratio and with dividend history before buying for income.

## Yield on cost
If you bought at $60 and the dividend is now $2.00, your yield on cost is 3.3% even though the stock yields 2.5% at today’s $80. It is a measure of how your own purchase has aged, useful for judging dividend growers, but not a reason to hold a stock that has become expensive.

## FAQ
**How do I turn a quarterly dividend into an annual one?** Multiply the most recent quarterly payment by four. For monthly payers, multiply by twelve. Special or one-off dividends should be left out.

**What is a good dividend yield?** For a broad index, 1.5 to 2.5% is typical. Individual dividend stocks often sit between 2 and 5%. Above about 6 to 8%, check whether the payout is sustainable before treating the yield as income.

**Does yield include buybacks?** No. Shareholder yield adds net buybacks to dividends; this calculator shows the cash dividend yield only.

Use the interactive version at https://foliofundamentals.com/tools/dividend-yield-calculator. Related: [How to calculate dividend yield](https://foliofundamentals.com/blog/how-to-calculate-dividend-yield), [Payout ratio calculator](https://foliofundamentals.com/tools/payout-ratio-calculator), [Dividend tracker](https://foliofundamentals.com/dividend-tracker).