Dividend Yield Calculator

Dividend Yield is a financial ratio that shows the percentage of a company's current share price paid out as dividends per share annually. It is calculated by dividing the annual dividend per share (DPS) by the current market share price and expressing it as a percentage.

To calculate Dividend Yield:

• Divide the annual dividend per share (DPS) by the current market share price.

• Multiply the result by 100 to express it as a percentage. Since dividends are often paid quarterly, the annual dividend is typically estimated by multiplying the latest quarterly dividend per share by four.

A good Dividend Yield depends on the context:
• A steadily increasing yield due to rising dividend payouts is generally positive.
• However, if the yield increases because of a declining share price, it may indicate underlying issues.
• A decrease in yield due to management cutting future dividends can also be a concern.

• Dividend Yield: Measures the return on investment from dividends relative to the share price.
• Dividend Payout Ratio: Shows the proportion of a company's earnings paid out as dividends, rather than retained.

Some investors consider the payout ratio a better indicator of a company's ability to sustain future dividend payments, as it is closely tied to cash flow.

The frequency of dividend distributions affects how often investors receive income:
• Quarterly Dividends: Paid every three months, providing more frequent income.
• Semi-Annual Dividends: Paid twice a year, often in larger amounts.
• Annual Dividends: Paid once per year, suitable for long-term investors who prefer lump-sum payments.