Dividend Yield Calculator

For Indian stocks, 2-3% is typical for blue chips (ITC, Infosys). 4-6% is considered high yield (Coal India, Power Grid, ONGC). Above 7% is exceptional and found in REITs like Embassy REIT or InvITs like IndiGrid. Always verify sustainability — very high yields can signal the stock price has fallen sharply.

Dividend Yield = (Annual Dividend Per Share / Current Stock Price) × 100. For example, if a stock trades at ₹500 and pays ₹15 annual dividend, the yield is 3%. This is the current yield — yield on cost can be much higher if you bought the stock years ago at a lower price.

Yes, since April 2020, dividends are taxable in the hands of the investor at their income tax slab rate. A 10% TDS is deducted if annual dividends exceed ₹5,000 from a single company. For high-income investors (30% bracket), the effective dividend return drops significantly vs tax-free options like ELSS or PPF.

It depends on your risk appetite. FDs give guaranteed 7-7.5% pre-tax (4.9-5.25% post-tax for 30% bracket). Dividend stocks give 2-6% yield PLUS potential capital appreciation of 10-12% (Nifty long-term). However, dividends can be cut and stock prices can fall. For retirees wanting certainty, FDs are safer. For long-term investors, dividend growth stocks outperform.

Yield on cost = (Current Annual Dividend / Original Purchase Price) × 100. If you bought a stock at ₹200 that now pays ₹20 dividend, your yield on cost is 10% even if the current yield (based on today's price of ₹500) is only 4%. This is why buying quality dividend growers early and holding long creates excellent income streams.