Enter the dividend amount, dividends payments per year, and the initial share price into the calculator to determine the stock yield.

## Stock Yield Formula

The following formula is used to calculate a stock yield.

SY = DA * DPY / SP
• Where SY is the stock yield
• DA is the dividend payment amount
• DPY is the dividend payments made per year
• SP is the initial share price

The dividend payment amount refers to the sum of money a company pays to its shareholders as a distribution of profits.

Dividend payments made per year refers to the frequency at which a company distributes profits to its shareholders in the form of cash or additional shares.

The initial share price refers to the price at which a company’s shares are first offered to the public for trading on a stock exchange.

## Stock Yield Definition

What is a stock yield? A stock yield is a ratio of the total dividends paid per year over the initial share price of the stock. This term is also often used interchangeably with dividend yield.

## Example Problem

How to calculate stock yield?

1. First, determine the dividend payment amount.

For this example, the stock pays out $25.00 per dividend period. 2. Next, determine the number of payments made each year. Typically, shares will pay our dividends on a quarterly, semi-annual, or annual basis. For this problem, the dividends are paid quarterly which means 4 times per year. 3. Next, determine the initial share price. These shares were purchased at a price of$250.00.

4. Finally, calculate the stock yield.

Using the formula above, and the information from previous steps, the stock yield is found to be (25*4)/250 = 100/250 = .40 = 40%.

## About Stock Yield

What is the stock yield percentage? A stock yield percentage is simply the stock yield, or the dividend yield expressed as a percentage instead of a ratio. To achieve this, multiply the result from the formula above by 100.

How often are yields paid? Dividends can be paid out in any frequency a company sees fit, but the most common are quarterly, semi-annually, and annually.

What is a good stock yield? Any stock yield above .03 or 3% is considered an exceptional stock yield.