Dividend Yield Calculator
Calculate the dividend yield, total dividend income, and projected income growth for your stock investments. Factor in dividend growth rate to see yield on cost over your holding period.
Dividend Yield
4%
Annual Income
₹2,000
Total Investment
₹50,000
Total Dividend Income
₹25,156
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Dividend Income Growth Over Time
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Year-by-Year Breakdown
| Year | Dividend/Share | Total Dividend | Cumulative Dividend | Yield on Cost |
|---|---|---|---|---|
| 1 | ₹20 | ₹2,000 | ₹2,000 | 4% |
| 2 | ₹21 | ₹2,100 | ₹4,100 | 4.2% |
| 3 | ₹22 | ₹2,205 | ₹6,305 | 4.41% |
| 4 | ₹23 | ₹2,315 | ₹8,620 | 4.63% |
| 5 | ₹24 | ₹2,431 | ₹11,051 | 4.86% |
| 6 | ₹26 | ₹2,553 | ₹13,604 | 5.11% |
| 7 | ₹27 | ₹2,680 | ₹16,284 | 5.36% |
| 8 | ₹28 | ₹2,814 | ₹19,098 | 5.63% |
| 9 | ₹30 | ₹2,955 | ₹22,053 | 5.91% |
| 10 | ₹31 | ₹3,103 | ₹25,156 | 6.21% |
What is Dividend Yield?
Dividend yield is the ratio of a company's annual dividend to its stock price, expressed as a percentage. It tells you how much cash flow you are getting for each rupee invested in a stock. A higher dividend yield indicates better income relative to the stock price.
Dividend Growth Investing
Dividend growth investing focuses on companies that consistently increase their dividends year over year. As the dividend grows, your yield on cost (the dividend yield based on your original purchase price) increases, providing an ever-growing income stream. Companies with a strong track record of dividend increases are often well-managed and financially stable.
Yield on Cost
Yield on cost (YOC) measures the dividend yield based on your original purchase price rather than the current market price. As dividends grow over time, your YOC increases even if the current dividend yield remains the same. This metric is especially valuable for long-term dividend investors tracking the income return on their original investment.