Work out dividend income from a holding and the yield it represents on your cost.
Yield on cost measures your own income against what you paid and rises over time as dividends grow. Current yield is what the market offers today and is the right basis for a new purchase. Long-term holders often quote a high yield on cost, but only the current yield tells you whether the shares are still attractive to buy.
Dividend Return
Yield on cost = dividend per share ÷ price you paid; current yield uses today’s price
Yield on cost = dividend per share ÷ price you paid; current yield uses today’s price Yield on cost measures your own income against what you paid and rises over time as dividends grow. Current yield is what the market offers today and is the right basis for a new purchase.
Long-term holders often quote a high yield on cost, but only the current yield tells you whether the shares are still attractive to buy.
This calculator takes 4 inputs: Shares held, Annual dividend per share, Price you paid per share, Current share price. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.