How to use it
- Type the Dividend per share, per year and the Share price.
- Optionally, type the Earnings per share to see the payout ratio, and the Number of shares you hold.
- Type the Withholding rate that applies to you, if you want the net income.
- Read the Dividend yield and, if you filled in the optional fields, the income before and after withholding.
How the yield and the payout ratio are calculated
The dividend yield is the dividend paid over a year divided by the price of the share. It shows the income return on the price you pay today, and it moves when the price moves, even if the dividend does not.
The payout ratio is the share of the profit that is paid out as dividends. Per share, it is the dividend per share divided by the earnings per share. A ratio above 100% means the dividend was larger than the profit for that year.
Dividend yield = dividend per share ÷ share price × 100
Payout ratio = dividend per share ÷ earnings per share × 100
Gross income = dividend per share × shares
Net income = gross income − gross income × withholding rate- A dividend of 2.50 on a price of 50 gives a yield of 5%.
- A dividend of 2.50 with earnings of 4.00 per share gives a payout ratio of 62.5%.
The withholding rate
Many countries take a withholding tax from dividends before they are paid. The rate depends on the law, on who receives the dividend and sometimes on where they live. This calculator does not know your rate, so it does not fill one in: type the rate that applies to you, and the net income is worked out from it.
Check the rate with your broker or with the tax office of your country, because it can change.
What this calculator does not include
- Dividends that are cut, paid late or paid in shares instead of cash.
- Taxes other than the withholding, and the tax on gains when you sell.
- Fees, and the timing of the payments within the year.
Worked example: dividend 2.50, price 50, earnings 4.00, 1,000 shares
The dividend yield is 2.50 ÷ 50 = 5.00%. The payout ratio is 2.50 ÷ 4.00 = 62.50%.
The gross dividend income on 1,000 shares is 2.50 × 1,000 = 2,500.00. For illustration only, with a withholding rate of 15%, the withholding is 375.00 and the net income is 2,125.00. Without a rate the net is shown as the gross, with a note.
| Figure | |
|---|---|
| Dividend yield | 5.00% |
| Payout ratio | 62.50% |
| Gross dividend income | 2,500.00 |
| Net at a 15% withholding | 2,125.00 |
Frequently asked questions
Is a high dividend yield always good?
Not on its own. A high yield can follow a fall in the share price, and a payout ratio above 100% means the dividend may not be sustainable from the earnings.
What does a payout ratio above 100% mean?
The dividend per share was larger than the earnings per share for the year, so the company paid more than it earned. It may be paid from reserves, which cannot last forever.
Why is there no default withholding rate?
The rate depends on the tax law and on who receives the dividend, so a default could be wrong for you. Enter the rate that applies to you, from your broker or tax office.
Does the yield include the price I paid?
No. The yield uses today's share price. If you bought at another price, your yield on cost is the dividend divided by your own purchase price.
Is my data sent to a server?
No. The calculation runs in your browser, and nothing you enter is sent to us.
Sources
- Wikipedia: Dividend yield (annualised dividend per share over the share price)
- Wikipedia: Dividend payout ratio (DPS divided by EPS)
Figures and text last checked on Tuesday, November 10, 2026.