{
  "slug": "dividend-yield",
  "title": "Dividend Yield Calculator",
  "heading": "Dividend Yield Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/dividend-yield",
  "summary": "Yield, annual income, and yield on cost.",
  "description": "Dividend yield measures income against the current share price; yield on cost measures it against what you actually paid. Long-term holders care far more about the second number.",
  "formula": "Yield = Annual dividend per share ÷ Current price. Yield on cost uses your purchase price instead.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=dividend-yield",
  "inputs": [
    {
      "id": "price",
      "label": "Current share price",
      "kind": "number",
      "hint": null,
      "default": 82,
      "unit": "$",
      "min": 0.01,
      "max": null
    },
    {
      "id": "costBasis",
      "label": "Your purchase price",
      "kind": "number",
      "hint": null,
      "default": 55,
      "unit": "$",
      "min": 0.01,
      "max": null
    },
    {
      "id": "dividend",
      "label": "Annual dividend per share",
      "kind": "number",
      "hint": null,
      "default": 3.2,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "shares",
      "label": "Shares held",
      "kind": "number",
      "hint": null,
      "default": 400,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "growth",
      "label": "Dividend growth rate",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "yieldPct",
      "label": "Dividend yield",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "yieldOnCost",
      "label": "Yield on cost",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "income",
      "label": "Annual dividend income",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthly",
      "label": "Average monthly income",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "inTenYears",
      "label": "Annual income in 10 years",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Current share price: 82 $",
      "Your purchase price: 55 $",
      "Annual dividend per share: 3.2 $",
      "Shares held: 400",
      "Dividend growth rate: 6 %"
    ],
    "outputs": [
      "Dividend yield: 3.90%",
      "Yield on cost: 5.82%",
      "Annual dividend income: $1,280.00",
      "Average monthly income: $106.67",
      "Annual income in 10 years: $2,292.29"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter current share price ($).",
      "Enter your purchase price ($).",
      "Enter annual dividend per share ($).",
      "Enter shares held.",
      "Enter dividend growth rate (%).",
      "Read your dividend yield on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "price": 49.199999999999996,
        "costBasis": 33,
        "dividend": 1.92,
        "shares": 240,
        "growth": 3.5999999999999996
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "price": 82,
        "costBasis": 55,
        "dividend": 3.2,
        "shares": 400,
        "growth": 6
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "price": 131.20000000000002,
        "costBasis": 88,
        "dividend": 5.120000000000001,
        "shares": 640,
        "growth": 9.600000000000001
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the dividend yield calculator work?",
      "a": "Dividend yield measures income against the current share price; yield on cost measures it against what you actually paid. Long-term holders care far more about the second number. The underlying maths is: Yield = Annual dividend per share ÷ Current price. Yield on cost uses your purchase price instead."
    },
    {
      "q": "What do I need to enter?",
      "a": "5 values: current share price, your purchase price, annual dividend per share, shares held, and dividend growth rate. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the dividend yield result mean?",
      "a": "It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/investment",
    "https://www.revenuelab.fyi/toolbox/bond-yield"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Dividend Yield Calculator (https://www.revenuelab.fyi/toolbox/dividend-yield)"
}