Calculate current dividend yield, yield on cost, payout ratio, dividend safety, and projected yield growth
| Dividend yield | Category | What it means |
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| Sector | Typical yield range | Your yield vs. benchmark |
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| Metric | Value | Notes |
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Founder & CEO, Toolraxy
Faiq Ur Rahman is a web designer, digital product developer, and founder of Toolraxy, a growing platform of web-based calculators and utility tools. He specializes in building structured, user-friendly tools focused on health, finance, productivity, and everyday problem-solving.
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Dividend investing rewards patience, but the numbers that matter aren’t always obvious. A stock yielding 6% might look great until you check the payout ratio and find the company is paying out 110% of earnings. This calculator exists for that exact moment. It gives you the current yield, the yield on your original cost, and a safety read in one screen.
You’ll use it if you own dividend stocks, are comparing income candidates, or want to project how a growing payout compounds your yield on cost. The tool runs entirely in your browser. Nothing you type is stored or sent anywhere. That matters when you’re entering your cost basis and share count.
Pick your currency. The selector at the top updates every money field so you can work in dollars, euros, pounds, or any of the 50+ supported currencies.
Enter the current share price. Use the latest market price. This is the denominator for your current yield.
Type the annual dividend per share. If the company pays quarterly, multiply one payment by four. Use trailing twelve-month dividends for a trailing yield, or your best forward estimate.
Add your share count. This is optional but unlocks annual, quarterly, and monthly income figures.
Enter your cost basis. The price you actually paid. Leave it at zero if you haven’t bought yet.
Add earnings per share. This activates the payout ratio and the dividend safety read.
Set a growth rate and projection years. Optional. A 3% growth rate over 10 years shows how your yield on cost climbs.
Choose an industry profile. The benchmark table adjusts to utilities, REITs, tech, or broad market norms.
The core equation is simple: current yield equals the annual dividend per share divided by the current share price, multiplied by 100.
Formula: Current Dividend Yield = (Annual Dividend Per Share ÷ Current Share Price) × 100
A stock trading at $48 with a $2.16 annual dividend yields 4.5%. The math doesn’t care about your purchase price. That’s why the tool calculates a second number: yield on cost.
Formula: Yield on Cost = (Annual Dividend Per Share ÷ Your Cost Basis) × 100
If you bought that same stock at $32, your yield on cost is 6.75%. The company didn’t change. Your entry point did.
The payout ratio adds a safety layer: it divides the annual dividend by earnings per share. A payout ratio under 60% is generally safe. Between 60% and 80% warrants monitoring. Above 80%, the dividend is at risk.
Formula: Payout Ratio = (Annual Dividend Per Share ÷ Earnings Per Share) × 100
The projection table compounds the dividend at your chosen growth rate. Each year, the dividend grows by that percentage, and the tool recalculates yield on cost against the same original cost basis. A flat or negative share price doesn’t enter the projection. It’s a dividend growth model, not a total return model.
Worked Example
Suppose you’re looking at a consumer staples company trading at $67.40. It pays $0.52 per quarter, so the annual dividend is $2.08. You own 350 shares, bought at an average cost of $41.20. The company earned $3.85 per share over the last twelve months.
Step 1: Current yield = $2.08 ÷ $67.40 × 100 = 3.09%.
Step 2: Yield on cost = $2.08 ÷ $41.20 × 100 = 5.05%.
Step 3: Payout ratio = $2.08 ÷ $3.85 × 100 = 54.0%. That’s below 60%, so the tool labels it “Safe.”
Step 4: Annual income = $2.08 × 350 = $728.00. That’s $182 per quarter, roughly $60.67 per month.
Step 5: Project a 4% annual dividend growth rate over 8 years. The dividend climbs to $2.85 per share by year 8. Your yield on cost on that original $41.20 basis rises to 6.92%. The annual income on 350 shares grows to $997.50.
The current yield barely moved if the share price stayed flat. Your yield on cost nearly doubled. That’s the point of tracking this number.
Divide the annual dividend per share by the current share price and multiply by 100. A $2.40 annual dividend on a $60 stock is a 4% yield. If the company pays quarterly, multiply one payment by four to get the annual figure first.
Dividend yield uses the current market price. Yield on cost uses the price you originally paid. If you bought at $30 and the stock now trades at $50 with a $2 dividend, your current yield is 4% and your yield on cost is 6.67%.
It’s above the broad market average, which sits closer to 2%. Whether it’s good depends on the payout ratio and the industry. A 5% yield from a utility with a 70% payout ratio is normal. The same yield from a tech company with a 110% payout ratio is a red flag.
Under 60% is generally safe for most industries. Between 60% and 80% deserves monitoring. Above 80% is at risk. REITs and utilities often run higher ratios because their earnings are more predictable, so use the industry benchmark as context.
It compounds the current dividend by your chosen growth rate each year. Then it divides the grown dividend by your original cost basis. A 4% growth rate on a $2 dividend over 10 years produces a $2.96 dividend, and the yield on cost rises accordingly.
Yes. Annualize the monthly payment first. If a stock pays $0.15 per month, the annual dividend is $1.80. Enter that figure in the annual dividend field. The rest of the calculation works the same way.
A yield above 8% often signals elevated risk. The share price may have fallen sharply, the dividend may include a one-time special payment, or the company may be struggling. Check the payout ratio and the dividend history before assuming the yield is sustainable.
Because the dividend grows while your cost basis stays fixed. If you bought at $25 and the company has raised its dividend every year, each raise increases the yield on your original investment. That’s the compounding effect dividend growth investors aim for.
No. The calculator works without EPS. But if you want the payout ratio and the safety verdict, you’ll need it. EPS figures are available on any stock quote page or the company’s income statement.
No. The yields and income figures are pre-tax. Your actual take-home dividend income depends on your tax bracket and the type of account holding the shares. Consult a tax professional for after-tax figures.
Use the company’s historical dividend growth rate as a starting point, then adjust for your outlook. A stable utility might grow 2% to 3% annually. A dividend aristocrat with decades of increases might average 6% to 8%. Be conservative with projections.
You can run each stock through the calculator one at a time and note the outputs. The copy button generates a text summary you can paste into a spreadsheet or notes app for side-by-side comparison.
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