Dividend Yield Calculator

Calculate dividend yield, annual dividend income, and total returns from dividend-paying stocks. See the power of dividend reinvestment (DRIP).

Dividend Investment Details

1,000,000
500
25
8%/yr
10%/yr
10 years
Shares Owned2,000
Current Dividend Yield5.00%
Annual Dividend Income₹50.0K/yr
Final Portfolio Value₹37.01 L

Total Return

270.11%

CAGR

13.98%

Return Breakdown

Portfolio Growth Over Time

Popular Dividend Stocks (Example Yields)

Coal India
7.2%
ITC Ltd
5.8%
Vedanta
9.5%
AT&T
6.5%
Johnson & Johnson
3.0%
Coca-Cola
3.2%

DRIP Power

See how reinvesting dividends (DRIP) compounds your wealth dramatically over time.

Passive Income

Calculate your annual dividend income for retirement or passive cash flow planning.

Multi-Currency

Calculate dividend returns in ₹, $, £, or any currency.

How to Use

1

Enter Investment

Set total amount you want to invest.

2

Stock Details

Enter current stock price and annual dividend per share.

3

Growth Rates

Set expected stock price growth and dividend growth rates.

4

Reinvest or Cash?

Toggle DRIP on to reinvest dividends or off to take as cash.

The Formula

Dividend Yield = (Annual Dividend / Stock Price) × 100
Dividend YieldPercentage return from dividends alone
Annual DividendTotal dividend per share paid in a year
Stock PriceCurrent market price of one share
DRIPDividend Reinvestment Plan - automatically buy more shares with dividends

Frequently Asked Questions

What is a good dividend yield?

Generally: 2-4% is average, 4-6% is good, 6-10% is high (but check if sustainable). Very high yields (10%+) can be risky — company might be in trouble. Balance yield with growth potential.

What is DRIP?

Dividend Reinvestment Plan. Instead of taking dividends as cash, you automatically buy more shares. This compounds your wealth dramatically — a 5% yield with DRIP can give 8-10% total returns over time.

Dividend yield vs total return?

Dividend yield is only dividend income. Total return includes dividend + stock price appreciation. A 4% dividend stock growing 8% annually gives 12% total return.

Are dividends taxed?

India: Dividend income is taxable at your slab rate. Up to ₹5,000/year dividend from Indian companies is exempt. US: Qualified dividends taxed at 0-20% (lower than ordinary income). UK: £500-1,000 dividend allowance, then 8.75%-39.35%.

Best dividend stocks for passive income?

Look for: (1) Consistent dividend history (10+ years), (2) Low payout ratio (under 60% of earnings), (3) Growing dividends yearly, (4) Strong fundamentals. Examples: ITC, Coal India (India), Coca-Cola, J&J (US).