Dividend Yield Calculator
Work out dividend yield, your yearly dividend income and the shares needed for a target income.
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Share and dividend
Dividend yield
3%
₹45 a year on a ₹1,500 share
- Yearly income from 100 shares
- ₹4,500
- Per month (average)
- ₹375
- Value of your shares
- ₹1,50,000
- Yearly income per ₹1,00,000 invested
- ₹3,000
Reverse: shares needed for a target income
You would need
2,667 shares
about ₹40,00,500 (₹40L) at ₹1,500 a share, to earn ₹1,20,000 a year at a 3% yield.
How dividend yield is calculated
Dividend yield is the yearly dividend per share divided by the share price, shown as a percentage: yield = annual dividend per share ÷ share price × 100. If a company pays several times a year, add the payments up (or multiply one payment by how many times it is paid) to get the annual figure.
Your income is simply the annual dividend per share times the number of shares you hold. Working backwards, the shares you need for a target income are the target divided by the dividend per share, rounded up to a whole share.
Example: a share trading at ₹1,500 pays ₹45 a year in dividends, so its yield is 45 ÷ 1,500 = 3%. Owning 100 shares earns ₹4,500 a year. To earn ₹10,000 a month (₹1,20,000 a year) you would need 2,667 shares — about ₹40,00,500 at today’s price.
What is a good dividend yield?
It depends on the market and the sector. Large Indian companies typically yield around 1–2%, while utilities, oil and gas, and some public-sector companies often pay 3–6%. A very high yield is not automatically good: if the price has fallen sharply or the dividend is larger than the company’s profits, the payout may be cut. Look at how steady the dividend has been over several years.
Why does the yield change every day?
The dividend is fixed for a period, but the share price moves daily. When the price rises the yield falls, and when the price drops the yield rises. The yield you lock in is the one at the price you buy.
Frequently asked questions
- Should I use the last year’s dividend or the expected one?
- The trailing yield uses dividends paid in the last 12 months; the forward yield uses what the company is expected to pay next. Trailing is factual, forward is an estimate — enter whichever you want to judge.
- Should I include a special or one-time dividend?
- Leave it out if it is unlikely to repeat; otherwise the yield looks higher than what you can expect in future.
- How are dividends taxed?
- It depends on where you live. In India, dividends are added to your income and taxed at your slab rate, and companies may deduct TDS above a yearly threshold. Enter your rate in the tax field to see what you keep; check current rules with a tax adviser.
- Is dividend yield the same as total return?
- No. Total return also includes the change in the share price. A stock can pay a 4% yield and still lose value overall.