Dividend Yield Calculator

Calculate the annual dividend yield of your stocks and estimate your total passive income from dividends.

Current Stock Price

₹

₹1₹1L

Annual Dividend (per share)

₹

₹0₹5K

Number of Shares

110K

Dividend Yield

Annual Income: ₹4,500

Investment: ₹1,50,000

Annual Dividend

₹

Per share payout

Monthly Income

₹

Passive income estimate

Yield Insight

This yield is within the typical range for stable, growth-oriented companies.

Dividend vs Stock Price

Visualizing the relationship between the stock price and the annual dividend payout.

Dividend Yield Explained

The Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is a key metric for income-seeking investors who want to generate passive cash flow from their stock portfolio.

Why Dividend Yield Matters

Dividends provide a steady stream of income, which can be especially valuable during market downturns. A consistent dividend history often signals a company's financial stability and commitment to returning value to shareholders.

Pros of Dividends

• Passive Income: Regular cash flow without selling shares.
• Lower Volatility: Dividend stocks often tend to be less volatile.
• Compounding: Reinvesting dividends can significantly boost long-term wealth.

Risks to Consider

• Dividend Cuts: Companies can reduce or stop dividends at any time.
• Dividend Trap: A high yield might hide a failing business.
• Taxation: Dividends are taxable in the hands of investors in India.

Frequently Asked Questions

What is Dividend Yield?

Dividend yield is a financial ratio that tells you the percentage of a company's share price that it pays out as dividends each year. It is calculated by dividing the annual dividend per share by the current stock price.

How is Dividend Yield calculated?

The formula is: Dividend Yield = (Annual Dividend per Share / Current Stock Price) x 100. For example, if a stock is priced at ₹1,000 and pays an annual dividend of ₹50, its yield is 5%.

Is a high dividend yield always good?

Not necessarily. A very high yield can sometimes be a 'dividend trap' if the stock price has fallen significantly due to underlying business problems. It's important to look at the payout ratio and the company's dividend history.

What is a good dividend yield in India?

A 'good' yield depends on the sector and market conditions. Generally, yields between 2% to 5% are considered healthy for stable blue-chip companies. Some PSU stocks in India are known for much higher yields.

What is Yield on Cost?

Yield on cost is the dividend yield calculated using the price you originally paid for the stock, rather than its current market price. As dividends grow over time, your yield on cost can become much higher than the current market yield.

Dividend Yield

Annual Income

₹4,500

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Dividend Yield Explained

Why Dividend Yield Matters

Pros of Dividends

• Passive Income: Regular cash flow without selling shares.
• Lower Volatility: Dividend stocks often tend to be less volatile.
• Compounding: Reinvesting dividends can significantly boost long-term wealth.

Risks to Consider

• Dividend Cuts: Companies can reduce or stop dividends at any time.
• Dividend Trap: A high yield might hide a failing business.
• Taxation: Dividends are taxable in the hands of investors in India.