Dividend Yield Calculator
Calculate dividend yield and annual income from stocks. See how much you need to invest for target monthly income.
Investment for Target Income
| Monthly Income | Investment Needed | Shares Needed |
|---|---|---|
| ₹10,000/mo | ₹40,00,000 | 8,000 |
| ₹25,000/mo | ₹1,00,00,000 | 20,000 |
| ₹50,000/mo | ₹2,00,00,000 | 40,000 |
| ₹1,00,000/mo | ₹4,00,00,000 | 80,000 |
Frequently Asked Questions
What is dividend yield?
Dividend yield = Annual Dividend Per Share / Current Market Price × 100. It shows how much income you earn relative to the stock price. A 3% yield means ₹3 income per ₹100 invested.
What is a good dividend yield?
In India, 2-4% is considered good. Above 5% is high yield (but verify sustainability). Nifty 50 average yield is ~1.2%. Compare with FD rates — a 4% yield with growth potential can outperform FDs.
Are dividends taxable?
Yes, dividends are taxable at your slab rate since FY 2020-21. TDS of 10% is deducted on dividends exceeding ₹5,000/year from a company. Dividend income is added to your total income.
Dividend yield vs dividend growth — what matters more?
For income: yield matters. For wealth: growth matters. A company growing dividends 15% yearly will outperform a high-yield stagnant payer within 5-7 years. Best: reasonable yield + consistent growth.
What is payout ratio?
Payout ratio = Dividends / Net Profit × 100. A 30-50% ratio is healthy. Too high (>80%) may be unsustainable. Too low (<10%) means the company retains most profits for growth.