Dividend Yield Calculator
Calculate dividend yield and project your passive income from dividend stocks.
Stock Details
Dividend Summary
Yield Classification: Moderate Yield (2-5%)
Income Projection (10 Years)
| Year | Dividend/Share | Yield | Annual Income | Cumulative |
|---|---|---|---|---|
| Year 1 | ₹15 | 3.00% | ₹1,500 | ₹1,500 |
| Year 2 | ₹16.5 | 3.30% | ₹1,650 | ₹3,150 |
| Year 3 | ₹18.15 | 3.63% | ₹1,815 | ₹4,965 |
| Year 4 | ₹19.97 | 3.99% | ₹1,997 | ₹6,962 |
| Year 5 | ₹21.96 | 4.39% | ₹2,196 | ₹9,158 |
| Year 6 | ₹24.16 | 4.83% | ₹2,416 | ₹11,573 |
| Year 7 | ₹26.57 | 5.31% | ₹2,657 | ₹14,231 |
| Year 8 | ₹29.23 | 5.85% | ₹2,923 | ₹17,154 |
| Year 9 | ₹32.15 | 6.43% | ₹3,215 | ₹20,369 |
| Year 10 | ₹35.37 | 7.07% | ₹3,537 | ₹23,906 |
Frequently Asked Questions
What is dividend yield?
Dividend yield is the annual dividend payment divided by the stock price, expressed as a percentage. It shows what percentage of your investment you receive as dividends each year. Formula: Dividend Yield = (Annual Dividend Per Share / Stock Price) × 100.
What is a good dividend yield?
Generally, 3-5% is considered a good dividend yield. Above 5% is excellent but may indicate higher risk. Below 2% is low but common for growth stocks. Very high yields (8%+) might signal potential dividend cuts or stock price decline. Always research the company's dividend history.
Are dividends taxable in India?
Yes, since April 2020, dividends are taxable in the hands of shareholders at their applicable income tax slab rate. TDS of 10% is deducted if dividend income exceeds ₹5,000 in a financial year. Dividend income is added to 'Income from Other Sources'.
What is dividend payout ratio?
Dividend payout ratio is the percentage of earnings paid out as dividends. Formula: Payout Ratio = (Dividends / Net Income) × 100. A ratio of 30-60% is healthy. Very high ratios (80%+) may be unsustainable. Low ratios mean company retains more for growth.
What is dividend growth rate?
Dividend growth rate is the annual percentage increase in dividends. Companies that consistently grow dividends (5-10% annually) are called 'dividend growers'. Look at 5-10 year CAGR of dividends to assess sustainability. Higher growth rates compound your income over time.
Should I reinvest dividends or take cash?
Reinvesting dividends (DRIP - Dividend Reinvestment Plan) compounds your returns by buying more shares. Take cash if you need income or want to diversify. Young investors should reinvest for growth; retirees may prefer cash income. Consider tax implications too.
What is ex-dividend date?
Ex-dividend date is the date on or after which the stock trades without the dividend. You must own the stock BEFORE the ex-dividend date to receive the dividend. On ex-date, stock price typically drops by the dividend amount. Record date is when company checks shareholder list.
Why does stock price drop after dividend?
When a company pays dividend, cash leaves the company, reducing its value. Stock price typically drops by the dividend amount on ex-dividend date. This is normal market adjustment. If you buy on ex-date, you get lower price but no dividend for that period.
What are dividend aristocrats?
Dividend aristocrats are companies that have increased dividends for 25+ consecutive years (US definition). In India, look for companies with 10+ years of consistent dividend growth. Examples: ITC, Coal India, HDFC Bank, Infosys. They indicate stable, shareholder-friendly companies.
High yield vs dividend growth - which is better?
Depends on your goals. High yield stocks provide immediate income but may have limited growth. Dividend growth stocks start with lower yield but increase over time. For long-term wealth, dividend growth often wins due to compounding. Balance both in your portfolio.
Can dividends be cut or stopped?
Yes, companies can reduce or eliminate dividends during financial stress. Watch for: declining earnings, high debt, payout ratio above 100%, negative cash flow. PSU companies are relatively safer for dividends due to government ownership. Diversify across sectors.
What is special dividend?
Special dividend is a one-time extra dividend paid in addition to regular dividends. Usually announced when company has excess cash, sells an asset, or has exceptional profits. Don't rely on special dividends for regular income planning as they're unpredictable.