Enter the annual dividends ($) and the current stock price ($) into the Return on Dividends Calculator. The calculator will evaluate and display the Return on Dividends. 

Return on Dividends Formula

The following formula is used to calculate the Return on Dividends. 

ROD = AD / SP * 100

  • Where ROD is the Return on Dividends (%)
  • AD is the annual dividends ($) 
  • SP is the current stock price ($) 

How to Calculate Return on Dividends?

The following example problems outline how to calculate Return on Dividends.

Example Problem #1:

  1. First, determine the annual dividends ($). 
    • The annual dividends ($) is given as: 50.
  2. Next, determine the current stock price ($). 
    • The current stock price ($) is provided as: 200.
  3. Finally, calculate the Return on Dividends using the equation above: 

ROD = AD / SP * 100

The values given above are inserted into the equation below and the solution is calculated:

ROD = 50 / 200 * 100 = 25.00 (%)


Example Problem #2: 

For this problem, the variables needed are provided below:

annual dividends ($) = 75

current stock price ($) = 300

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

ROD = AD / SP * 100 = ?