How to read dividend yield
Compare income with the current and original price.
1
Enter the annual dividend
Use the regular dividend per share, not a special payment.
2
Add the current price
Use the latest market price for the current yield.
3
Add your cost and shares
This shows the yield on cost and the income from the holding.
What does this tool do?
Dividend yield compares the annual dividend with the current price. Yield on cost uses the price paid and can look very different after a share price move.
The Formula
Yield = Annual dividend per share ÷ Current price; yield on cost uses the purchase priceFrequently Asked Questions
Is a high yield always better?
No. A very high yield can signal a falling price or a dividend that may be cut. Check payout sustainability.
Does the yield include special dividends?
No. This uses the regular annual dividend. One-off payments should be treated separately.