Use with current data
Dividend yield changes when price changes and when dividends are raised, cut or suspended. Use current, dated dividend and price inputs.
Example
If a share pays 2.40 per year and trades at 60, the dividend yield is 2.40 / 60 x 100 = 4%. With 100 shares, annual dividend income would be 240 before taxes.
Common mistakes
Do not assume a high yield is automatically attractive. The price may have fallen because the market expects lower future dividends or higher business risk.
Limitations
Dividend yield is not total return and does not guarantee future payments. It excludes price changes, taxes, withholding, currency effects and reinvestment timing.
Last reviewed: 2026-05-17