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Free financial calculator

Dividend Yield Calculator

Payout vs. price - plus payout-ratio check.

Also available in German: Dividendenrendite-Rechner →

Inputs

Share price

Also called: Stock price, market price

Where to find it: Any finance site (Google/Yahoo Finance) — the current trading price per share.

How to derive: Set by the market; just enter the current price per share.

Dividend per share

Also called: DPS, payout per share

Where to find it: Investor-relations page or the dividend history on finance portals (trailing 12 months).

How to derive: Total dividends paid ÷ shares outstanding.

Earnings per share (EPS)

Also called: EPS, net income per share

Where to find it: Bottom of the income statement, or the key-stats box on finance portals.

How to derive: Net income ÷ shares outstanding.

Result, live

Dividend yield
Payout ratio

Sustainable payout is usually below ~60–70% - above that, growth or the dividend eventually suffers.

Dividend yield shows how much payout you get per dollar invested — the annual dividend divided by the price. This calculator pairs the yield with the crucial reality check: the payout ratio, which reveals whether the company can actually afford its dividend.

How the formula works

The dividend yield is dividend per share divided by the price. The payout ratio relates the dividend to earnings per share and shows how much of the profit is paid out:

Dividend yield = dividend ÷ price
Payout ratio = dividend ÷ earnings per share

Example: price $80, dividend $2.40, earnings $5 per share. Yield = 2.40 ÷ 80 = 3.0%. Payout ratio = 2.40 ÷ 5 = 48% — a good half of the profit stays in the company.

How to read the result

Two numbers together give the picture:

  • Yield 2–6% — solid and usually sustainable.
  • Below 2% — more of a growth or reinvestment profile.
  • Above 8% — strikingly high, often a warning sign of a looming cut.

For the payout ratio: below 60% is comfortable, 60–80% ambitious, above 80% gets tight — the dividend is then hanging by a thread.

What to watch out for

Yield alone is a trap:

  • A high yield is often an alarm. It usually comes from a fallen price, not from generous payouts.
  • The ratio needs real profit. If the dividend is paid from substance or with debt, it isn't sustainable.
  • Watch the history. A steadily rising dividend is worth more than a high but shaky one.

Dividend yield by sector

A dividend yield only means something next to the company's own sector: utilities and real estate pay out a lot, growth sectors hardly anything. The table shows median and range for every sector from our database, updated daily.

Dividend yield by sector: median and range
SectorLower quartileMedianUpper quartileStocks
Information Technology0.5 %1.3 %3.2 %2,648
Health Care0.6 %1.6 %3.4 %1,446
Materials0.6 %1.7 %3.7 %2,522
Industrials0.7 %1.8 %3.7 %4,197
Consumer Discretionary0.8 %2.2 %4.7 %2,814
Consumer Staples1.2 %2.7 %4.6 %1,342
Energy1.1 %2.7 %5.3 %808
Financials1.3 %2.8 %5.0 %2,498
Communication Services1.0 %2.8 %5.6 %769
Utilities1.4 %3.1 %4.7 %545
Real Estate1.4 %3.8 %6.5 %1,373

Source: the Fair Value Calculator database, 20,962 stocks with a valid value for Dividend yield, as of Sep 5, 2026. Median: half of the sector's stocks sit below it. Lower and upper quartile: 25 % sit below or above. Values move daily with prices. All valuation ratios by sector →

Frequently asked questions

What is a good dividend yield?
For most quality stocks it sits between 2 and 6%. Much higher is not automatically better — very high yields often arise because the price has fallen for good reason.
Why is the payout ratio so important?
It shows whether the dividend is covered by current profit. Above 80% there is little room for investment or bad years — the risk of a cut rises noticeably.
Where do I get dividend and earnings per share?
From the annual report or finance portals. In our Fair Value Calculator, dividend, earnings and payout ratio are already on file for 35,000+ stocks — no typing required.
What value is normal in my sector?
See the table in the sector comparison section: median and range for every sector from our database, updated daily. A value near the median of the company's own sector is usual; well below or above it calls for a reason in the business model.