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Dividend Yield Calculator

Calculate dividend yield, annual dividend income, and projected returns from any stock. See how dividend reinvestment (DRIP) grows your income over time.

Currency
Stock Details
Currency
Current Share PriceRs.500
Rs.
11,00,000
Annual Dividend per ShareRs.20
Rs.
010,000
Number of Shares Held100 shares
qty
11,00,000
Expected Annual Dividend Growth5% per year
%
0%30%
Your Result

Fill in the details and
your result appears here.

Dividend Yield
Dividend Yield
Annual Dividend Income
Monthly Dividend Income
Total Investment Value
Dividend Income in 5 Years
Dividend Income in 10 Years
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Did You Know?
Dividend growth beats yield
A stock yielding 5% with 0% growth pays the same forever. A stock yielding 2% but growing dividends at 12% per year doubles its yield in 6 years and quadruples in 12. Dividend growth investors prioritise growth rate over current yield.

How to use this calculator

1

Enter share price and dividend

Use the current market price and the last declared annual dividend per share.

2

Enter number of shares

Your current holding to calculate total annual income.

3

Set dividend growth rate

Companies that grow dividends 5-10% per year dramatically increase income over a decade.

The formula explained

Dividend Yield = (Annual Dividend per Share / Share Price) x 100
Annual Income = Dividend per Share x Number of Shares
Future Dividend = Current Dividend x (1 + Growth Rate)^Years

Dividend yield compares annual dividend income to the share price. A 4% yield on a Rs.500 stock means Rs.20 annual dividend per share. Growing dividends compound like interest.

Frequently Asked Questions

What is a good dividend yield?

It depends on the sector and interest rates. In India, 2-4% yield is common for quality large caps. Above 6-7% may signal a value trap. A consistent and growing dividend is more important than a high yield.

Should I buy stocks only for dividend yield?

No. High dividend yield can mean the share price has fallen (yield goes up when price falls). Focus on dividend payout consistency, earnings coverage, and growth of dividends over time.

Is dividend income taxable in India?

Yes. Dividends are taxed at your slab rate (added to total income). TDS at 10% is deducted if dividend exceeds Rs.5,000 per company per year. No separate dividend tax from 2020 onwards.

What is dividend reinvestment (DRIP)?

Automatically buying more shares with dividend income instead of taking cash. Compounding dividends can multiply long-term wealth significantly. Many international brokers offer automatic DRIP.

What is a good dividend yield?

A dividend yield of 3-6% is generally considered attractive. Above 8% may indicate the stock price has fallen significantly (distress signal). Below 1% is common for high-growth companies that reinvest earnings.

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