How to Calculate a Stock Yield

by Contributor ; Updated July 27, 2017
You can get a snapshot of your stock's return by calculating the dividend yield.

Many investors look for dividend-paying stocks to add to their portfolio. A company pays dividends to shareholders, typically quarterly, out of its profits or reserves. A stock with a strong, secure yield offers the benefit of collecting additional income and also has the potential for capital appreciation. You can find dividend yield information in some newspaper financial pages or on financial websites, but it is simple to calculate the stock yield yourself.

Step 1

Find the current price of the stock you would like to research, as well as the dividend payment information. You can look up share prices in your newspaper's financial tables or find them online at financial websites or your online brokerage account.

Step 2

Determine the annual dividend total. Most companies that pay dividends do so each quarter, so you may need to multiply that number by four to get an annual dividend figure.

Step 3

Divide the annual dividend total by the current market price of the stock. This will give you the stock's current yield, in terms of percentage.

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