Dividend Yield Calculator Formula

Understand the math behind the dividend yield calculator. Each variable explained with a worked example.

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Formulas Used

Dividend Yield

dividend_yield = share_price > 0 ? annual_dividend / share_price * 100 : 0

Annual Dividend Income

annual_income = annual_dividend * shares_owned

Monthly Dividend Income

monthly_income = annual_income / 12

Variables

VariableDescriptionDefault
annual_dividendAnnual Dividend per Share(USD)3.5
share_priceCurrent Share Price(USD)100
shares_ownedShares Owned100

How It Works

Dividend Yield Formula

Yield = Annual Dividend per Share / Share Price × 100%

Dividend yield indicates the return from dividends alone, not including capital gains.

Worked Example

A stock paying $3.50 annual dividend at $100 per share, owning 100 shares.

annual_dividend = 3.5share_price = 100shares_owned = 100
  1. 01Yield = $3.50 / $100 × 100 = 3.5%
  2. 02Annual income = $3.50 × 100 = $350
  3. 03Monthly income = $350 / 12 = $29.17

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