What is a good dividend yield?

For stocks, 2–5% is generally considered healthy. Yields above 6–7% may indicate a falling share price (yield trap) rather than a generous dividend policy.

What is a dividend yield trap?

When a company's share price falls significantly, the dividend yield rises even if the dividend stays the same. If the company then cuts the dividend, investors lose both income and capital.

Is a high dividend yield always better?

Not always. A very high yield can signal financial distress. Focus on dividend sustainability (payout ratio, earnings growth) as well as the yield figure.

Dividend Yield Calculator

The Dividend Yield Calculator shows the annual income you receive from dividends as a percentage of the current share price. Dividend yield is a key metric for income investors — it lets you compare the income-generating potential of different stocks or compare stock income to other assets like bonds or savings accounts.

Annual Dividend per Share($)

Current Share Price($)

Frequently Asked Questions

Dividend yield = Annual Dividend per Share ÷ Share Price × 100. It shows the annual return from dividends alone as a percentage of the investment.

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