Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Calculate trailing dividend yield, annual cash income, payout ratio and yield on cost.
Dividend inputs
Current dividend yield
—
Annual dividend income
—
Payout ratio
—
Yield on cost
—
Calculation guidance will appear here.
How This Is Calculated
Dividend yield is annual dividend per share divided by current share price, expressed as a percentage. Payout ratio is dividend per share divided by earnings per share (EPS), showing what portion of profit is being distributed versus retained. This calculator computes both, plus your total expected dividend income and yield-on-cost (dividend relative to your original purchase price, not current price).
Frequently Asked Questions
What is the difference between dividend yield and yield-on-cost?
▼
Dividend yield uses the current market price as the denominator, showing what a new buyer would earn today. Yield-on-cost uses your original purchase price, showing your personal return relative to what you actually paid — for a long-held stock with growing dividends, yield-on-cost can be much higher than the current yield.
Is a high dividend yield always a good sign?
▼
Not necessarily. A high yield can result from genuinely strong, sustainable dividend policy, or from a falling share price (since yield rises when price falls even with an unchanged dividend) — check the payout ratio and business fundamentals rather than yield alone.
Is dividend income taxable in India?
▼
Yes, dividend income is fully taxable at your applicable slab rate, with TDS at 10% if dividends from a company exceed ₹5,000 in a year — see the site's Dividend Income Tax Calculator for the full computation.
Scope: Computes dividend yield, payout ratio and projected dividend income from a stock holding, based on entered dividend and price/earnings data.
Calculation logic
Dividend yield = (Annual dividend per share ÷ Current market price per share) × 100.
Dividend payout ratio = (Total dividend paid ÷ Net profit, or equivalently Dividend per share ÷ Earnings per share) × 100.
Projected annual dividend income = Dividend per share × Number of shares held (or to be purchased with the entered investment amount).
Inputs and assumptions
Dividend figures used are historical/trailing figures as entered by the user — future dividends are not guaranteed and can be reduced, suspended or increased at the company's discretion.
Dividend yield is a point-in-time ratio based on the current price entered; it moves inversely with price even if the dividend amount itself is unchanged.
Exclusions and edge cases
Does not model dividend growth projections unless the user enters an assumed growth rate for a multi-year income projection.
Tax on dividend income (taxable at the investor's slab rate under current law) is not netted out of the projected income figure unless the user adjusts for it separately.
Sources
No specific external regulatory source applies beyond general market-linked instrument mechanics.
Review status: reviewed and approved by CA Nikhil Gupta on 18 July 2026.
Finin2min is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or as a Research Analyst. This tool performs an arithmetic calculation on the figures you enter and is published for general information and educational purposes only. It is not investment advice, it is not personalised to your financial circumstances, objectives or risk tolerance, and it is not a recommendation to buy, sell or hold any security, scheme or product. Projected values are illustrative and follow directly from the assumptions you supply; actual returns will differ, and past performance does not indicate future results. Consider consulting a SEBI-registered Investment Adviser before acting on any investment decision.