Dividend Calculator
About the Dividend Calculator
A dividend is a share of a company's profit paid to shareholders, usually quoted as a percentage of the share price called the dividend yield. This calculator estimates the annual dividend income from a holding at a given yield.
Enter your investment amount and the dividend yield to see the yearly income it would generate at that rate.
Frequently asked questions
How is dividend income calculated?
Dividend income = investment amount × dividend yield ÷ 100. For example, ₹5,00,000 invested at a 3% yield pays ₹15,000 a year, before tax.
What is dividend yield?
Dividend yield is the annual dividend expressed as a percentage of the current share price. A ₹10 dividend on a ₹200 share is a 5% yield. It rises when the price falls and falls when the price rises.
Are dividends taxable in India?
Yes. Since 2020 dividends are taxed in the investor's hands at your income-tax slab rate. Companies also deduct TDS at 10% if your dividend from a company crosses ₹10,000 in a year (₹5,000 before April 2025).
Is dividend yield guaranteed?
No. Companies can raise, cut or skip dividends depending on profits and policy, and the share price moves too. A high past yield does not guarantee future payouts.
What is the difference between dividend yield and total return?
Yield counts only the dividend income; total return also includes the change in the share price. A stock can have a low yield but high total return if its price grows, and vice versa.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation to buy, sell or hold any investment. Where a rate of return, inflation or growth is an input, it is an assumption: actual returns vary and are not guaranteed, and past performance may or may not be sustained in future. It does not take your personal circumstances into account. Dividends are declared by the company, are neither assured nor fixed, and are taxable in the investor’s hands. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.