What is dividend yield?
Dividend yield is the annual dividend as a percentage of the share price — how much cash income you get per rupee invested.
Dividend yield expresses a company’s annual dividend as a percentage of its current share price. It tells you, in income terms, how much cash you receive each year for every rupee you put into the stock — the dividend equivalent of an interest rate.
A higher yield sounds attractive, but read it carefully. A yield can be high because the company genuinely pays generously and steadily — or because the share price has crashed (a falling price mechanically lifts the yield). The second kind is a warning sign, not a bargain, especially if the dividend itself is at risk of being cut.
Yield matters most for income-focused investors and for stable, cash-rich sectors (utilities, PSUs, large FMCG). For growth investors, a low or zero yield is fine — that company is reinvesting to grow. Always pair yield with whether the dividend is sustainable from real, recurring profit.
Formula
Dividend yield = Annual dividend per share ÷ Share price × 100
Example
A stock at ₹400 that pays a ₹20 annual dividend has a 5% yield. If the price falls to ₹250 with the same dividend, the yield jumps to 8% — attractive only if that dividend is actually safe.
See it on real companies
Browse live financials and decoded filings, or just ask in plain English.
Common questions
Is a high dividend yield always good?
No. A very high yield often means the share price has fallen sharply, sometimes because the market expects the dividend to be cut. Check that profits comfortably cover the dividend.
What is a good dividend yield in India?
It varies by sector, but steady payers often yield 1–5%. Compare a stock’s yield to its peers and its own history, and prioritise dividend safety over headline yield.