Stocks & Income
Dividend Yield Calculator
Calculate a stock’s current dividend yield, your personal yield on cost, and a projected forward yield based on expected dividend growth.
Current yield
3.29%
Yield on cost
4.56%
Projected forward yield
3.48%
Next year's dividend
$2.04
per share
Annual dividend income
$192.00
this year, before tax
Projected annual income
$343.84
by year 10, before tax
At today's price, this stock's current yield is 3.29%. Assuming 6.0% annual dividend growth, next year's forward yield on today's price would be approximately 3.48% — a different figure from yield on cost, 4.56%, which is measured against what you actually paid rather than today's price.
On 100 shares, that's $192.00 in dividend income this year, projected to approximately $343.84 per year by year 10 if the growth assumption holds.
Projected dividend income over time
Your numbers
Sum of the last four declared dividends, or the indicated annual rate.
What you actually paid — used for yield on cost.
Used for actual (not per-share) income figures.
+Advanced options
Horizon for the projected income figure above.
Adds a today's-purchasing-power version of the projected income.
The formula
Dividend Yield = (Annual Dividend Per Share ÷ Share Price) × 100
Yield on cost uses the same formula but divides by your original purchase price instead of the current price — a way of tracking how your personal income return has grown over time as the company raises its dividend.
Projected annual income multiplies shares owned by the dividend per share compounded forward at your growth assumption: Shares × Dividend × (1 + growth)ʸᵉᵃʳˢ. It's an amount on your actual position, not a per-share rate.
How to read it
Dividend yield expresses a stock’s cash payout as a percentage of its price, letting you compare income potential across companies of very different share prices. It moves in two directions: yield rises when the price falls (with the dividend held constant), and falls when the price rises.
That mechanical relationship is why yield alone is an incomplete signal. A rising yield can mean a stock has become cheaper and more attractive, or it can mean the market has lost confidence and expects a dividend cut. Pairing yield with the payout ratio — dividends as a share of earnings — and the company’s free cash flow trend gives a much fuller picture.
Yield on cost is a useful way to track a long-held position: as a quality company grows its dividend year after year, an investor’s yield on their original cost basis can climb well above the stock’s current yield, even though a new buyer today would receive a lower rate.
The chart below makes that compounding visible: a dividend growing at a constant rate produces an income line that curves upward, not a straight line — the same effect that makes long-held dividend growth stocks compound quietly in the background of a portfolio.
Frequently asked
What is a good dividend yield?+
There’s no universal answer — it depends on the sector and the company’s growth stage. Broad market yields have historically averaged roughly 1.5–2.5%, while mature, income-focused sectors like utilities or REITs often yield 4–7%. A yield far above a sector’s norm can be a warning sign of a falling share price or an unsustainable payout, not a bargain.
What is yield on cost, and why does it differ from current yield?+
Current yield uses today’s share price. Yield on cost uses the price you originally paid. If a stock you bought years ago has grown its dividend while the price has also risen, your yield on cost can be far higher than the yield a new buyer would get today — it reflects your personal history with the position, not the stock’s current valuation.
Is a high dividend yield always good?+
No. A very high yield is often the market pricing in a dividend cut — the share price has fallen faster than the dividend has been reduced, mechanically pushing yield up. Check the payout ratio and free cash flow trend before treating a high yield as a sign of value.
How is the projected forward yield calculated?+
This calculator multiplies your entered annual dividend by (1 + expected growth rate) to estimate next year’s dividend, then divides that by the current share price. It’s a simple projection based on your own growth assumption, not a forecast from the company.
How is projected annual income different from the forward yield?+
Forward yield is a percentage on today's share price, useful for comparing stocks. Projected annual income is an amount on your actual position — shares owned times the dividend per share, compounded forward at your growth assumption to your chosen holding period. It answers 'how much income will I actually collect,' not 'how does this stock's yield compare to others.'
What does the real (inflation-adjusted) projected income show?+
It's the projected annual income figure deflated by an assumed inflation rate, showing what that future income would be worth in today's purchasing power. It's an estimate based on the inflation rate you assume, not a prediction of actual future inflation — leave it at 0% to ignore it.
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Educational tool, not advice. This calculator illustrates a standard formula using the numbers you enter. It does not account for your full financial picture, taxes, or local market conditions, and it is not a recommendation to buy, sell, or hold any asset. Speak with a licensed professional before making investment decisions.