Dividend Yield Calculator
Calculate a stock's dividend yield, your expected annual income after tax, and how many years of dividends it takes to recover your investment.
India: Dividends added to income and taxed at your slab rate since FY 2020-21
Disclaimer. This calculator is provided for educational and informational purposes only. Results are estimations and do not constitute professional financial, investment, tax, or legal advice. Consult a qualified advisor before making financial decisions. Read full disclaimer →
About Dividend Yield Calculator
Dividend yield is the annual dividend per share divided by the current market price, expressed as a percentage: Yield = (Annual DPS / Share Price) x 100. It represents the return from dividends alone, excluding capital appreciation. Dividend Payout Ratio = Dividends paid / Net profit. A low payout ratio (below 40%) indicates the company retains most earnings for reinvestment; a high ratio (above 70%) may indicate limited growth investment but high income generation.
Dividend taxation in India: dividends are taxable in the recipient hands at their applicable income tax slab rate (since April 2020, DDT was abolished). TDS at 10% on dividends above Rs 5,000 per year per company. High-yield sectors in India: PSU banks, state utilities, ONGC, Coal India typically yield 4-8%. Dividend yield above 6-7% in a single stock warrants investigation - it may signal a falling share price or unsustainable payout. For income investors, dividend-focused mutual funds provide diversified exposure to high-yield stocks. Total Shareholder Return (TSR) = dividend yield + capital appreciation.