Last updated: January 19, 2026
Dividend yield shows how much a company pays in dividends relative to its stock price. It's calculated as annual dividend per share divided by price per share.
A higher yield isn't always better—it could indicate a falling stock price or unsustainable dividend. Compare yields within the same sector.
Yield changes daily as stock prices fluctuate. "Yield on cost" uses your purchase price for a more personal measure.
Understanding dividend yield helps you make better investment decisions and plan for taxes. Use our calculate yield to see how it applies to your situation.
2-4% is typical for stable companies. 4-6% can be attractive but verify sustainability. Above 6% may signal risk or business problems. Compare within sectors.
(Annual dividend per share ÷ current stock price) × 100. Example: $4 dividend ÷ $100 price = 4% yield.
Yes, daily. Yield rises when stock price falls (same dividend). Yield falls when price rises. Companies can also change dividend amounts.
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