Dividend Yield Calculator

Calculate the income return from any dividend-paying stock. Educational only — not financial advice.

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Share price (£)

Annual dividend per share (£)

Shares held (optional)

Dividend frequency

What is dividend yield?

Dividend yield tells you how much income a stock pays relative to its price. A £10 share paying 50p a year has a 5% yield — you earn 5p of income for every £1 invested.

The FTSE 100 average yield is typically 3–4%. Yields above 6% can signal either a generous payer or a falling share price — always investigate why.

Results are illustrative only and do not constitute financial advice. Past dividends are not a guarantee of future payments.

Enter a share price and annual dividend above to calculate yield.

How to use this calculator

1Enter the share priceType the current price you'd pay for one share, in pounds (e.g. 8.50 for £8.50).
2Enter the annual dividend per shareAdd the total dividend paid per share over a year, in pounds. Sum the interim and final dividends if the company pays more than once — you'll find these in its dividend history.
3Add the number of shares you hold (optional)Enter a holding size to see your estimated annual income and total investment value.
4Pick the payment frequencyChoose annual, semi-annual, quarterly or monthly to see the income per payment as well as the yield.

What dividend yield tells you

Dividend yield is the annual income a share pays, expressed as a percentage of its price — the income return on your money before any share-price movement.

A £10 share paying 40p a year yields 4%: for every £1 invested you receive 4p of income annually. It lets you compare the income from very different shares — and against a savings account or bond — on a like-for-like basis.

Yield moves inversely with price. When a share price falls, its yield rises, which is why an unusually high yield can be a sign of a bargain or a warning that the market expects the dividend to be cut.

How it's calculated

Divide the annual dividend per share by the current share price, then multiply by 100.

Dividend yield (%) = (Annual dividend per share ÷ Share price) × 100

What counts as a good yield?

Context matters more than the headline number. These bands are a rough guide for UK shares:

Under 2% — low. Common for growth companies that reinvest profits instead of paying them out.
3–4% — around the FTSE 100 average; typical of established, profitable payers.
5–6% — above average. Attractive, but check the dividend is well covered by earnings.
7%+ — high. Sometimes a genuine income opportunity, often a signal the market doubts the payout is sustainable.

Always check dividend cover

A high yield is only worth having if the company can afford it. Dividend cover — earnings per share divided by dividend per share — tells you how many times the payout is covered by profit. Cover below 1.5x is worth a closer look; below 1x means the company is paying out more than it earns, which rarely lasts.

Also note the ex-dividend date: you must own the share before this date to receive the next payment. And remember yields are backward-looking — a past dividend is never a guarantee of the next one.

Frequently asked questions

How do I calculate dividend yield?

Divide the annual dividend per share by the current share price and multiply by 100. For example, a share priced at £8.00 paying a 32p annual dividend yields 4% (0.32 ÷ 8.00 × 100). Enter both figures above and the calculator does it instantly.

What is a good dividend yield?

For UK shares, 3–4% is around the FTSE 100 average and considered healthy. Yields of 5–6% can be attractive if the dividend is well covered by earnings. Very high yields (7%+) deserve caution — they often reflect a falling share price and the risk of a dividend cut.

Why is a very high dividend yield a warning sign?

Because yield rises as the share price falls. A yield well above a company's historical norm often means the market has marked the price down in anticipation of a dividend cut or deteriorating business. A high yield is only good if the payout is sustainable.

Is dividend yield the same as total return?

No. Dividend yield is only the income portion. Total return also includes any change in the share price (capital gain or loss). A share can have a high yield but a negative total return if its price falls.

How often are dividends paid?

Most large UK companies pay twice a year (an interim and a final dividend). Some pay quarterly, and a few pay monthly. The annual dividend used in the yield calculation is the total across all payments in a year.

Do I need to own the share on a specific date to get the dividend?

Yes. You must hold the share before its ex-dividend date to be entitled to the next payment. Buying on or after the ex-dividend date means the seller, not you, receives that dividend.

Find sustainable income

Openbook shows dividend yield, cover and payout history for every UK stock — so you can tell a reliable income payer from a yield trap before you buy.

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This calculator is for educational purposes only and does not constitute financial advice. Always do your own research or consult a regulated adviser before investing.