Dividend Yield Calculator
Work out a stock's dividend yield from the annual dividend per share and the share price.
Input Data
Results
At a glance:Dividend yield = annual dividend per share / share price x 100%. It measures the annual cash return from dividends at the current price. Example: HK$2 dividend at HK$50 price = 4%. The yield rises when the price falls and falls when the price rises. WARNING: A very high yield may be a 'dividend trap' if driven by a price crash; dividends are not guaranteed; Hong Kong dividends are generally not taxed, but check the company's policy and profitability. Always pair with the payout ratio and earnings stability.
Formula
Dividend yield = annual dividend per share / share price × 100%.
$$\text{Dividend Yield} = \dfrac{\text{Annual Dividend Per Share}}{\text{Share Price}} \times 100\%$$How to Use
- Enter the total annual dividend per share.
- Enter the current share price.
- View the dividend yield at the current price.
FAQ
Is a higher dividend yield always better?
Not necessarily. A high yield can be good (stable payer) or a warning. If the yield is high only because the price crashed, it may reflect doubt about the payout's sustainability — a 'dividend trap'. Look beyond yield at payout ratio, earnings and cash flow.
How is dividend yield different from payout ratio?
Yield is dividend / price (investor's return at the current price); payout ratio is dividend / net profit (how much of earnings is paid out). Yield tells you the return; payout ratio tells you if it is sustainable. A 8% yield with a 120% payout is hard to sustain.
Are Hong Kong stock dividends taxed?
Hong Kong generally does not levy a dividend tax or withholding on locally received dividends, and does not tax individuals on share price gains — a feature of Hong Kong's simple tax regime. But overseas holdings (e.g. US, A-shares) may be subject to foreign withholding, and trading as a business may attract profits tax. Seek professional advice for your case.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.