Dividend yield calculator
Dividend yield is the yearly payment divided by the price. It lets you line up shares that cost 12 euro against shares that cost 400 without doing the sum in your head.
Dividend yield
- Dividend yield
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- Per year
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- Per month
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How to use it
Take the price from the quote and the dividend per share from the company’s last twelve months. Add how many shares you hold and you also get the income in a year and in a month.
An example
A share trades at 42 euro and paid 1.50 euro over the last year, so the yield is 3.6 percent. On 200 shares that is 300 euro a year, or 25 euro a month before tax.
What the result leaves out
The yield uses the last payment and the price right now, so it moves every day and says nothing about the next payment. A company that has just announced a cut still shows a high yield until the price catches up.
Questions people ask
Last year’s is a fact, the expected one is an estimate. Most screens show the last twelve months, so use that if you want your number to match what you see elsewhere.
Because a quarterly figure is not the yearly one. Add the four payments of the last year, otherwise the yield comes out four times too small.
On its own, no. Look at what share of profit the dividend takes. A payment that eats nearly all the earnings has no room left when business turns.