Download the App Now!

CalculatorsDividend Yield Calculator

Dividend Yield Calculator

Calculate dividend yield of a stock by adding annual company dividend and current stock price as input.

Dividend Amount

₹ 0
₹ 1,000

Current Market Price

₹ 500
₹ 2,00,000

Your Dividend Yield is 20.00%

Invest in Share Market @ 0% Brokerage

Understanding dividends is crucial for investors seeking stable returns from their investments. Dividend yield, which is the ratio of a dividend to a company’s share price and expressed as a percentage, is one of the most important metrics.

Investors rely on dividend yield to assess the income potential of their investments and make informed decisions. However, manually calculating dividend yield can be time-consuming and prone to errors. For this, dividend yield calculators, designed to simplify this process, have become very useful.

What is a Dividend Yield Calculator?

A dividend yield calculator is an online tool that allows an investor to calculate the expected income from a stock investment. This online calculator works by multiplying the annual dividend payment by a stock's current market price and then calculating the dividend yield as a percentage. The formula for computing a dividend yield is:

Dividend Yield = Annual Dividend per share / Current market price per share

A dividend yield calculator can be used to compare different investment choices, thus enabling investors to make sound decisions on where to invest their money.

Ordinarily, high dividend yields are better since they imply higher possible returns from dividends relative to how much was paid for the investment. Nevertheless, an excessively high dividend rate may not be sustainable, hence investors should first check their payout ratio before making any decision.

Example of Dividend Yield Calculator

Consider this example to explain how a dividend yield calculator operates. Now, if you own shares in XYZ Corporation, whose stock is currently being transacted at ₹500 per share. XYZ Corporation pays ₹20 per share in annual dividends.
Using a dividend yield calculator:

Input the current stock price: ₹500
Input the annual dividend per share: ₹20
The calculator then computes the dividend yield as follows:

Dividend Yield = (Annual Dividend per Share / Current market Stock Price) * 100
= (₹20 / ₹500) * 100
= (0.04) * 100
= 4%

So, the dividend yield for Company XYZ would be 4%. This means for every ₹100 invested in Company XYZ's stock, you receive ₹4 in annual dividends.

Step-by-Step Guide to Use the Dividend Yield Calculator

The Dhan Dividend Yield Calculator is easy to use and gives accurate results. It's a tool that investors can trust to help them make smart decisions about their investments.

Using the Dhan dividend yield calculator is straightforward and requires just a few simple steps.

  • Input Data: Begin by entering the required data into the calculator. Typically, this includes the stock price and the annual dividend per share.
  • Verify Data Accuracy: Double-check the accuracy of the input data to ensure the calculations are based on correct information. Mistakes in input can lead to inaccurate results.
  • Calculate: Once the data is entered, the calculator will automatically compute the dividend yield based on the provided inputs. This calculation is usually done by dividing the annual dividend per share by the current stock price and multiplying by 100 to get the percentage.

After the calculation is complete, review the dividend yield percentage displayed by the calculator. This figure represents the return on investment in dividends relative to the stock price.

Benefits of Using the Dividend Yield Calculator

Using a dividend yield calculator can provide several benefits, especially for investors looking to analyze and compare dividend-paying stocks. Here are some key advantages:

  • Quick Analysis: A dividend yield calculator provides a quick way to analyze the dividend-paying capacity of a stock. It instantly computes the dividend yield based on a stock's current dividend payments and its market price.
  • Comparison Tool: Investors can use the calculator to compare the dividend yields of multiple stocks within the same industry or across different sectors. This comparison helps in identifying stocks with attractive dividend yields relative to their peers.
  • Income Projection: A dividend yield calculator helps project future income from dividends by estimating potential payouts based on different dividend payment scenarios and stock prices. By inputting these variables, investors can forecast how much they might earn from dividends over time, aiding in financial planning and goal setting.
  • Yield Monitoring: Investors can use the calculator to monitor changes in dividend yields over time. Tracking these fluctuations can provide insights into the company's financial health and management's dividend policy.
  • Decision Making: The dividend yield calculator can assist investors in making informed investment decisions. By evaluating the relationship between dividend yield and other financial metrics, such as earnings per share (EPS) and payout ratio, investors can assess the sustainability and attractiveness of dividend payments.

National Savings Certificates VIII Issue is an excellent scheme. The initial investment and the accrued interest for the first four years enjoy the benefit of Section 80C of Income Tax Act.


Now that you know why dividend yield matters and how it affects your investment choices, using a dividend yield calculator can make investing easier for you. With this tool, you can quickly see how much dividend income you might get from different stocks and decide where to put your money.

Remember, staying informed and using resources like the Dhan dividend yield calculator can help you reach your financial goals and make your future more secure.

Invest & Trade with a Trading
Platform That's icon

Open your Dhan Account in minutes!



*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN - U74999WB2012PTC184187 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: Office No. 14D, 4th Floor, Shri Krishna Chambers, 78, Bentick Street, Kolkata - 700001, West Bengal, India.
Corporate Office: A-302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Land Line: 022-43116666.

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.

Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances

Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit

Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.

Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.

Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/

Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX

Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets

Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Saarthi 2.0 Mobile App for Investors