Dividend Yield Calculator
Dividend yield tells you how much cash income a stock pays out each year relative to its price, expressed as a percentage. It is the number income-focused investors use to compare shares, and this calculator works it out along with the annual rupee income your holding would generate at the current price. It also helps you spot yields that look too good to be true, which often signal a falling share price rather than genuine generosity.
Dividend Yield
4.80%
Annual Dividend Income
₹1,200
About the Dividend Yield Calculator
A dividend yield calculator converts a stock's annual dividend and its current price into a percentage yield, and multiplies the dividend by your shareholding to show the yearly income. It is a quick gauge of the cash return a share offers, separate from any capital gain.
Why it is useful
Two stocks paying the same rupee dividend can offer very different value depending on their price. Yield standardises this, letting you compare income across shares and against fixed deposits or bonds. It also flags outliers — an unusually high yield is often a warning that the market expects the payout to be cut.
How the calculation works
Dividend yield is calculated as Dividend Yield = (Annual Dividend per Share ÷ Current Market Price) × 100. The annual income from your holding is simply the number of shares multiplied by the annual dividend per share. A rising price lowers the yield for the same dividend, and a falling price raises it.
Key inputs explained
- Annual dividend per share: The total dividend a company pays per share over a year.
- Current market price: The share's present trading price, which sets the yield.
- Number of shares: Your holding, used to work out the total annual income.
Example calculation
Inputs
- Current price
- ₹250
- Annual dividend
- ₹10 per share
- Shares held
- 600
Calculation breakdown
- Yield
- (10 ÷ 250) × 100 = 4%
- Annual income
- 600 × 10 = ₹6,000
- TDS at 10% (above ₹5,000)
- ₹600
The stock yields 4%, in the normal 2-5% range for Indian dividend payers. Your 600 shares earn ₹6,000 a year; because this exceeds ₹5,000 from the company, TDS of ₹600 is deducted, leaving ₹5,400 credited. The full ₹6,000 is added to your income and taxed at your slab rate, with the TDS adjustable against it.
Benefits
- Compares the cash return of different stocks on a common percentage basis.
- Estimates the real annual income your shareholding produces.
- Helps identify unusually high yields that may signal trouble.
Limitations
- Yield uses past dividends, which companies can cut or stop at any time.
- It ignores capital gains, which often dominate total equity returns.
- A high yield may simply reflect a falling price rather than a strong payout.
Tips
- Check the payout ratio and earnings to see if the dividend is sustainable.
- Treat yields far above 6-7% with caution and investigate the reason.
- Remember dividends are taxed at your slab rate, unlike long-term capital gains.
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About this calculator
The Dividend Yield Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.