# Dividend Yield Calculator

> Computes the dividend yield and annual income of a shareholding from the share price and the annual (or quarterly) dividend per share, and projects the holding's value and income after a number of years with dividends reinvested at a constant yield and dividend growth rate.

- Calculator id: `dividend-yield` · Category: Finance (`finance`) · Tool name: `calculate_dividend_yield`
- Canonical page: https://tttkmbb.com/finance/dividend-yield · This document: https://tttkmbb.com/finance/dividend-yield.md · JSON definition: https://tttkmbb.com/finance/dividend-yield.json

## Purpose

Computes the dividend yield and annual income of a shareholding from the share price and the annual (or quarterly) dividend per share, and projects the holding's value and income after a number of years with dividends reinvested at a constant yield and dividend growth rate.

**Use when:** You want the yield of a stock or fund, the income from a given number of shares, or a projection of reinvested dividends over time.

**Do not use when:** You need the profit from selling shares (use stock-profit) or a total-return comparison between two prices (use cagr).

## Input

| Parameter | Type | Unit | Required | Description |
| --- | --- | --- | --- | --- |
| `share_price` | number |  | required | Current price per share. (> 0, max 10000000) |
| `annual_dividend_per_share` | number |  | optional | Total dividends paid per share per year; takes precedence over quarterly_dividend_per_share. (min 0, max 1000000) |
| `quarterly_dividend_per_share` | number |  | optional | Dividend per share per quarter (annual = 4 × quarterly), used when the annual figure is omitted. (min 0, max 1000000) |
| `shares` | number |  | optional, default 1 | Number of shares owned. (> 0, max 1000000000000) |
| `dividend_growth_percent` | number | %/year | optional, default 0 | Expected annual growth of the dividend per share (the share price is assumed to grow at the same rate, keeping the yield constant). (min -50, max 50) |
| `years` | integer | years | optional | Optional horizon for the reinvestment projection. (min 1, max 60) |

## Output

| Field | Type | Unit | Description |
| --- | --- | --- | --- |
| `annual_dividend_per_share` | number |  | As given, or 4 × quarterly. |
| `dividend_yield_percent` | number | % | annual_dividend_per_share / share_price × 100. |
| `annual_dividend_income` | number |  | annual_dividend_per_share × shares. |
| `quarterly_dividend_income` | number |  | annual_dividend_income / 4. |
| `projected_share_price` | number |  | share_price × (1 + g)^years (only with years). |
| `projected_shares_with_drip` | number |  | shares × (1 + yield)^years. |
| `projected_value_with_drip` | number |  | projected_shares_with_drip × projected_share_price. |
| `projected_annual_income_with_drip` | number |  | projected_shares_with_drip × dividend per share in that year. |
| `projected_annual_income_without_drip` | number |  | shares × annual_dividend_per_share × (1 + g)^years. |

## Formula

`yield = annual_dividend_per_share / share_price; income = annual_dividend_per_share × shares. With g = dividend_growth_percent/100 and a constant yield: shares_N = shares × (1 + yield)^N; price_N = share_price × (1 + g)^N; value_N = shares_N × price_N; income_N = shares_N × annual_dividend_per_share × (1 + g)^N`

Reinvestment is modelled once a year at the year-end price with fractional shares; the price is assumed to track the dividend so the yield stays constant. Taxes on dividends and price changes unrelated to dividends are ignored.

## Data Sources

- Investopedia – Dividend Yield: Meaning, Formula, Example and Pros and Cons — https://www.investopedia.com/terms/d/dividendyield.asp (reference, retrieved 2026-09-24)
- Investopedia – Dividend Reinvestment Plan (DRIP) — https://www.investopedia.com/terms/d/dividendreinvestmentplan.asp (reference, retrieved 2026-09-24)
- Wikipedia – Dividend yield — https://en.wikipedia.org/wiki/Dividend_yield (reference, retrieved 2026-09-24)

Data freshness: `static`. Deterministic formula with fixed constants; results never go stale. Inputs supplied by the caller determine the output.

## API

- `GET https://tttkmbb.com/api/v1/calculate/dividend-yield?share_price=…`
- `POST https://tttkmbb.com/api/v1/calculate/dividend-yield` with JSON body `{"inputs": {…}}`
- Response: unified envelope (`success`, `request`, `result.values`, `result.units`, `sources`, `freshness`, `timestamp`, `next_actions`, `links`); see https://tttkmbb.com/docs/response-format.md
- Schema: https://tttkmbb.com/api/v1/calculators/dividend-yield · OpenAPI operationId `calculate_dividend_yield` in https://tttkmbb.com/openapi.json
- Authentication: none. Rate limit: fair use, see https://tttkmbb.com/docs/rate-limits.md.

## MCP

- Server: `https://tttkmbb.com/mcp` (Streamable HTTP, JSON-RPC 2.0, no auth)
- Tool:  `run_calculator` with `{"calculator_id": "dividend-yield", "inputs": {…}}`

## Example

- 50 per share, 2 dividend, 100 shares, 5 % growth, 10 years: inputs `{"share_price":50,"annual_dividend_per_share":2,"shares":100,"dividend_growth_percent":5,"years":10}` → `{"annual_dividend_per_share":2,"dividend_yield_percent":4,"annual_dividend_income":200,"quarterly_dividend_income":50,"projected_share_price":81.44,"projected_shares_with_drip":148.0244,"projected_value_with_drip":12055.81,"projected_annual_income_with_drip":482.23,"projected_annual_income_without_drip":325.78}`
- 120 per share, 0.75 quarterly, 40 shares: inputs `{"share_price":120,"quarterly_dividend_per_share":0.75,"shares":40}` → `{"annual_dividend_per_share":3,"dividend_yield_percent":2.5,"annual_dividend_income":120,"quarterly_dividend_income":30}`

```
GET https://tttkmbb.com/api/v1/calculate/dividend-yield?share_price=50&annual_dividend_per_share=2&shares=100&dividend_growth_percent=5&years=10
```

## Limitations

You need the profit from selling shares (use stock-profit) or a total-return comparison between two prices (use cagr). Reinvestment is modelled once a year at the year-end price with fractional shares; the price is assumed to track the dividend so the yield stays constant. Taxes on dividends and price changes unrelated to dividends are ignored. All values are computed from the formula above; no measurement or live data is involved.

## FAQ

**Trailing or forward dividend?**

Enter whichever you want the yield to reflect: the last four payments (trailing) or the latest declared payment annualized (forward). Yields quoted by data providers are usually trailing.

**Why does reinvesting matter so much?**

Reinvested dividends buy more shares, which pay more dividends: at a 4 % yield the share count grows 48 % in 10 years, so income rises 48 % more than dividend growth alone.

## Related

- [Compound Interest Calculator](https://tttkmbb.com/finance/compound-interest.md) — Same compounding arithmetic for cash savings.
- [Stock Profit Calculator](https://tttkmbb.com/finance/stock-profit.md) — Profit from selling the shares.
- [CAGR Calculator](https://tttkmbb.com/finance/cagr.md) — Annualized growth between two values.