Dividend Yield Formula

    Dividend yield measures the annual dividend income relative to the stock price, helping you assess the income potential of dividend-paying investments.

    Dividend Yield Formula

    Dividend Yield = (Annual Dividend per Share / Price per Share) × 100

    Where:

    • D = Annual dividend per share
    • P = Current price per share

    Step-by-Step:

    1. 1

      Find annual dividend

      Sum of all dividends declared in the past year per share.

    2. 2

      Find current price

      Current market price of the stock.

    3. 3

      Calculate yield

      (Dividend / Price) × 100.

    Worked Examples:

    ITC dividend

    Dividend: ₹15.50/sharePrice: ₹450

    Result: 3.44%

    (15.50 / 450) × 100 = 3.44% dividend yield

    Frequently Asked Questions