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Dividend Yield Calculator

Calculate the dividend yield of a stock by dividing the annual dividend by the share price. Assess income potential before investing in dividend-paying shares.

Last reviewed 15 August 2026Source: FCA — Investment basics

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Rates & sources

Compound growth assumes reinvested returns and no platform fees. Past performance is not a guide to future returns.

Source: FCA — Investment basics — check the linked guidance and any live quote before acting.

When to use this calculator

  • Before choosing between saving, investing or changing a contribution.
  • When you want to compare cautious, base and optimistic return assumptions.
  • When you need a projection before making a longer-term decision.
  • When you want to see whether starting earlier or contributing more changes the outcome more.

A realistic UK planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic UK planning example
InputValue
Annual Dividend Per Share (£)1.20
Share Price (£)£0.30
Number of Shares100

After entering these figures, review yield, annual income and portfolio value together rather than in isolation. Then rerun the tool with one input adjusted.

How to read your results

Yield

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Annual Income

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Portfolio Value

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Method & assumptionsAuthoritative sources

This calculator computes dividend yield as annual dividend per share divided by current share price, expressed as a percentage. It can also work in reverse — enter a target yield and share price to determine the implied annual dividend. The calculation is a point-in-time snapshot based on the most recently declared annual dividend; it does not account for special dividends, dividend cuts, or the impact of share price movements between ex-dividend dates. Results are gross figures before UK dividend tax. Dividends held within a Stocks and Shares ISA are exempt from UK income tax. The calculator does not assess dividend sustainability or company fundamentals. Always conduct thorough due diligence before making investment decisions based on yield alone. This tool is for educational purposes only.

Common mistakes

  • !Assuming a constant return without checking a more conservative growth rate.
  • !Forgetting ongoing contributions, fees or tax wrappers where relevant.
  • !Focusing only on the final balance instead of the path required to reach it.
  • !Ignoring the drag of charges over a long period.

What to do next

  • Test a cautious, expected and optimistic growth rate.
  • Compare this result with related savings or retirement tools before committing more money.
  • Consider charges and any tax wrapper that applies.
  • If the projected balance falls short, increase the contribution until the result meets your goal.

Frequently asked

Dividend yield = annual dividend per share / share price x 100. For example a share paying 20p in dividends at a £4 price yields 5%. Trailing yield uses the last 12 months of dividends; forward yield uses forecast dividends. FTSE 100 average dividend yield is historically around 3.5-4%.

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