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Marketbeat Dividend Calculator

MarketBeat Yield Formula:

\[ Yield = \frac{Dividend}{Price} \]

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1. What is MarketBeat Yield?

The MarketBeat yield represents the dividend yield calculated as annual dividend per share divided by the current stock price. It shows the percentage return on investment from dividends alone.

2. How Does the Calculator Work?

The calculator uses the MarketBeat yield formula:

\[ Yield = \frac{Dividend}{Price} \times 100 \]

Where:

Explanation: The formula calculates what percentage of the stock price is returned to investors through dividends annually.

3. Importance of Dividend Yield

Details: Dividend yield helps investors compare income-generating potential of different stocks and assess whether a stock's dividend is sustainable relative to its price.

4. Using the Calculator

Tips: Enter the annual dividend per share in USD and the current stock price in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good dividend yield?
A: Typically 2-6% is considered good, but this varies by industry. Very high yields may indicate risk.

Q2: Should I only invest in high-yield stocks?
A: Not necessarily. Consider dividend growth, payout ratio, and company fundamentals along with yield.

Q3: How often is dividend yield calculated?
A: Yield changes constantly as stock prices fluctuate. Dividends are typically paid quarterly.

Q4: Does yield include dividend growth?
A: No, this is the current yield based on the most recent dividend. Future yields may differ.

Q5: What's the difference between yield and dividend rate?
A: Dividend rate is the dollar amount paid, while yield shows that amount as a percentage of the stock price.

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