Dividend Return Calculator
Work out the income your shares pay you, the dividend yield at today's price, and your yield on the price you originally paid.
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How to use this calculator
- Enter dividend per share — Per payment, not per year.
- Enter payments per year — Most Indian companies pay once or twice a year.
- Enter number of shares
- Enter current share price
- Enter price you paid — Used to show your yield on cost.
- Enter expected dividend growth — How fast you expect the dividend to rise each year. (optional — leave it as it is if it does not apply)
- Read the result — it updates as you type.
The formula used
Income = Dividend per share × Payments per year × Shares · Yield = Annual dividend ÷ Price × 100
- Yield
- Annual dividend as a percentage of the current share price
- Yield on cost
- The same dividend measured against the price you originally paid
Yield always uses the annual dividend. If a company pays ₹12 twice a year, the annual dividend is ₹24 — using ₹12 would halve the yield.
Worked example
500 shares paying ₹12 twice a year, priced at ₹400, bought at ₹250.
- Annual dividend per share₹12 × 2 = ₹24
- Annual income₹24 × 500 = ₹12,000
- Yield = ₹24 ÷ ₹400 × 100 = 6.00%
- Yield on cost = ₹24 ÷ ₹250 × 100 = 9.60%
The holding is worth ₹2,00,000 and pays ₹12,000 a year — but measured against what you actually paid, it yields 9.6%.
What dividend yield does and does not tell you
Dividend yield is the cash a share pays you each year as a percentage of its price. It is the closest thing a share has to an interest rate — with the crucial difference that it is not promised.
A very high yield is usually a warning
Yield rises when the price falls. A yield far above the market average often means investors expect the dividend to be cut. Check whether the company's earnings actually cover the payment before treating a high yield as a bargain.
Yield on cost is a nice number, not a decision tool
If you bought years ago at a low price, your yield on cost can look spectacular. It tells you the holding worked out well; it says nothing about whether to hold it today. For that, the current yield is the relevant figure.
Total return is what counts
Dividends are only part of the story. A share yielding 6% that falls 10% has lost you money. Use the Stock Profit/Loss Calculator alongside this one.
Tips and common mistakes
Getting more out of it
- Check that the dividend is covered by the company's earnings before treating a high yield as attractive.
- Use the current yield, not yield on cost, when deciding whether to buy more today.
Mistakes to avoid
- Entering the per-payment dividend as if it were the annual figure, which halves or quarters the yield.
- Reading an unusually high yield as a bargain — it usually means the price fell because a cut is expected.
- Forgetting that dividends are taxed at your slab rate in your own hands.
Frequently asked questions
Are dividends taxable in India?
Yes. Since the 2020 change, dividends are taxed in the hands of the investor at your slab rate, and companies deduct TDS above a threshold. The figures here are before tax.
What is a good dividend yield?
It varies by sector and by interest rates. Compare a share's yield with its own history, with its sector, and with what a fixed deposit pays — and always check the payout is sustainable.
Do dividends reduce the share price?
Yes. On the ex-dividend date the price typically drops by roughly the dividend amount, because the cash has left the company. A dividend is not free money.
What is the dividend growth assumption for?
It projects your income if the company keeps raising its dividend. It is an assumption only — dividends can be frozen or cut, especially in a downturn.
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