Dividend Yield Calculator

Dividend-paying companies distribute earnings to shareholders based on the number of shares they own. However, evaluating dividend stocks directly through per-share payouts doesn't always provide a clear picture due to varying share prices. The dividend yield, expressed as a percentage, relates the annual dividends to the price per share, offering a standardized measure to gauge the return on investment from dividends. This metric is crucial for comparing the dividend-paying potential of different stocks.

To calculate the dividend yield, divide the annual dividends paid per share by the current market price per share, then multiply by 100 to get a percentage. The formula is: