What is Dividend Yield Calculator?
Calculate dividend yield, annual dividend income, and compare dividend-paying stocks for regular income investing Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Dividend yield shows dividend income as a percentage of stock price. A ₹10 dividend on a ₹200 stock gives 5% yield. Higher yield can mean generous dividends or falling stock price — check both.
How to Use This Calculator
- Enter the current market price of the stock
- Enter the annual dividend per share paid by the company
- Enter the number of shares you hold or plan to buy
- Click Calculate to see dividend yield percentage and annual income
- Compare yield across multiple stocks to find best income opportunities
Worked Example
Stock Price: ₹500 | Annual Dividend: ₹25/share | 200 shares → Dividend Yield: 5% | Annual Dividend Income: ₹5,000 | Quarterly: ₹1,250
Why Use This Tool?
- Find stocks offering better dividend yield than FD rates
- Calculate exact annual passive income from dividend portfolio
- Compare dividend yield across sectors for income investing
- Understand if high yield is sustainable or a dividend trap
Frequently Asked Questions
What is a good dividend yield in India?
For Indian stocks, a dividend yield of 3-5% is considered good. Coal India, ONGC, Power Finance, and some PSU banks regularly offer 5-8% yields. Yields above 8% may indicate a dividend trap — stock price has fallen sharply, making yield look high artificially.
Is dividend income taxable in India?
Yes. Dividend income is taxable in the hands of investors at their applicable income tax slab rate (from FY 2020-21 onwards, the old Dividend Distribution Tax was abolished). TDS at 10% is deducted by the company if total dividend exceeds ₹5,000 per year.
What is a dividend trap?
A dividend trap is when a stock has an artificially high yield because the price has crashed. For example, if a stock paying ₹10/year drops from ₹200 to ₹100, yield jumps from 5% to 10%. But the company may be in trouble and cut dividends soon. Check payout ratio and earnings stability.
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