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Dividend Yield Calculator
Estimate the annual dividend income you can expect from your holdings. Adjust any input below and your results update instantly.
Understanding dividend yield
The concept, the motivation, and what to watch out for.
What is dividend yield?
Dividend yield is a stock's annual dividend per share divided by its current price, expressed as a percentage — it tells you how much income you'd earn relative to what you'd pay for the stock today.
Unlike a fund's NAV growth, dividend income is paid out in cash rather than reinvested automatically, making it a distinct source of return alongside any change in the share price itself.
Yield and price move in opposite directions
If the dividend per share stays the same but the stock price rises, the yield falls — yield is always relative to what you paid, or would pay today.
Dividends aren't guaranteed
Companies can cut, suspend, or grow their dividend based on profitability — a high current yield alone doesn't guarantee that income continues unchanged.
How this calculator helps
Enter your investment, the share price, and the declared dividend — your expected income and yield update instantly, with a projection of how it could grow over time.
Calculate your dividend income
Fill in the starred fields on the left — your results update instantly on the right.
Your details
Assume dividend growth
Project the dividend per share rising every year instead of staying flat.
≈ ₹5.00 L
e.g. ₹5,00,000 in a dividend-paying stock
e.g. ₹450 per share
e.g. ₹12 per share
e.g. 10 years
How these compare
vs. typical India long-term ranges
Dividend yield: 2.67%
Typical Indian large-cap: 1–4%
These are example numbers. Edit any input on the left to see your own.
Your estimated dividend income this year is
₹13,333
2.67% dividend yield
Cumulative income
₹1.33 L
Yield on cost, final year
2.67%
Cumulative income vs. investment
Cumulative incomeAmount invested
Year-by-year breakdown
"% recovered" shows how much of your original investment you’ve received back in cumulative dividends alone.
YearCumulative incomeThat year's incomeStatus
1₹13,333₹13,333
3% recovered
3% of investment recovered via dividends
3₹40,000₹13,333
8% recovered
8% of investment recovered via dividends
5₹66,667₹13,333
13% recovered
13% of investment recovered via dividends
7₹93,333₹13,333
19% recovered
19% of investment recovered via dividends
9₹1.20 L₹13,333
24% recovered
24% of investment recovered via dividends
10₹1.33 L₹13,333
27% recovered
27% of investment recovered via dividends
Compare scenarios
See how small changes move your cumulative income.
Your plan
2.7% yield · 10y
₹1.33 L
Cumulative income
Baseline
Hold 5 more years
2.7% yield · 15y
₹2.00 L
Cumulative income
+₹66,667
Dividend growth +2pp
2% growth · 10y
₹1.46 L
Cumulative income
+₹12,663
Worked example, using your numbers
A step-by-step walkthrough of how your holding becomes your dividend income.
Step 1 · Shares held
Investing ₹5.00 L at ₹450 per share buys you
1111.1 shares
Step 2 · Dividend yield
At ₹12 per share, your yield on today’s price is
2.67%
Step 3 · This year's income
Multiplying your shares by the dividend per share gives
₹13,333
✓
Over 10 years, your holding could pay a cumulative ₹1.33 L in dividend income alone.
Personalised insights
What your numbers reveal, and what changing them would do.
Your ₹5.00 L investment buys 1111.1 shares, paying ₹13,333 this year
At today's ₹12 dividend per share, that's a 2.67% yield on your investment.
Over 10 years, you'd recover 27% of your investment via dividends alone
Cumulative dividend income over the period reaches ₹1.33 L, separate from any change in the share price itself.
Holding 5 more years adds ₹66,667 in cumulative income
Extending your holding period to 15 years grows your total dividend income from ₹1.33 L to ₹2.00 L.
Assuming even modest dividend growth changes the picture substantially
Turning on "Assume dividend growth" shows how a steadily rising payout compounds your income over time.
How this is calculated
Every step of the math behind your result, shown in the open.
Shares in your holding
Investment = amount invested, Share Price = current price per share
Your investment amount buys a number of shares based on today's price — this is the fixed quantity your dividend income is paid on.
Example: ₹5.00 L ÷ ₹450 → 1111.1 shares
Your current dividend yield
DPS = dividend per share, Yield = dividend yield as a percentage
Dividing the declared dividend per share by the current share price gives the yield — the income rate you'd earn on an investment made today.
Example: ₹12 ÷ ₹450 → 2.67% yield
Projecting future income
DPS_0 = today's dividend per share, g = annual dividend growth, y = year index
If the dividend per share grows by a constant rate (g) each year, multiplying your share count by that year's dividend gives your expected income for that year.
Example: 1111.1 shares × ₹12 → ₹13,333/yr
Assumptions
- Dividend growth is off by default — turn it on to project a steadily rising payout.
- Assumes your share count stays constant — dividends aren't automatically reinvested into more shares.
- The share price itself is not projected to change — this calculator estimates income only, not capital gains.
- Figures are indicative and pre-tax — not financial advice.
Did you know?
A few facts behind dividend yield and income investing.
%
Indian large-caps often yield 1-4%
Established, profitable Indian companies commonly offer dividend yields in the 1-4% range, with higher yields more common among PSUs and mature, slow-growth businesses.
Cut
A dividend cut often hits the share price too
Because income investors specifically buy for the payout, an unexpected dividend cut can trigger a price decline on top of the lost income.
Tax
Dividends are taxed differently from capital gains
In India, dividend income is added to your total income and taxed at your slab rate, unlike equity capital gains which have their own separate tax treatment.
Aristocrat
Some companies raise dividends for decades
Globally, a small group of "dividend aristocrats" have increased their payout every year for 25+ consecutive years, a track record income investors specifically look for.
Frequently asked questions
Straight answers to the questions we hear most about dividend income.
What is dividend yield?
Dividend yield is a company's annual dividend per share divided by its current share price, expressed as a percentage — it shows the income return you'd earn relative to the stock's price today.
Is a higher dividend yield always better?
Not necessarily. A very high yield can sometimes signal a falling share price (which inflates the yield) or an unsustainable payout, rather than genuinely strong income. Check the company's payout ratio and earnings stability too.
Do dividends get reinvested automatically?
No, unlike a mutual fund's growth option, stock dividends are typically paid out in cash to your bank or demat-linked account, not reinvested automatically — you'd need to manually reinvest them if you want compounding.
What is 'yield on cost'?
Yield on cost measures a future year's dividend against your original purchase price rather than the current price. If dividends grow over time, your yield on cost rises even if the share price and current yield stay flat.
Does this account for dividend distribution tax?
No, figures here are indicative and pre-tax. Dividend income in India is taxed at your applicable income tax slab rate, which can meaningfully reduce your actual take-home income.
Is this financial advice?
No. This tool provides indicative estimates based on your assumptions. Consult a certified financial advisor before making investment decisions.
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Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
Dividend yield vs yield on cost
Why the same dividend can mean a rising effective yield for long-term holders.
5 min read
Taxation
How dividend income is taxed in India
Why dividends are added to your income and taxed differently from capital gains.
5 min read
Risk
Spotting an unsustainable dividend
Why an unusually high yield can be a warning sign rather than a bargain.
6 min read