How to Calculate Dividend Yield From Dividend Percentage Rate

by Mark Kennan

The dividend percentage rate and the dividend yield both measure the relationship between the amount of money paid out per share in dividends, and the share price. The dividend yield is typically measured as a decimal while the dividend percentage rate is measured as a percentage. If you want to know how much you will get paid based on either the dividend yield or the dividend percentage rate, you need to know the number of shares you own, and the current price of the stock.

1. Divide the dividend percentage rate by 100 to convert to the dividend yield. For example, if the dividend percentage rate equals 3.4 percent, divide 3.4 by 100 to find that the dividend yield equals 0.034.

2. Multiply the dividend yield by the stock price to calculate the dividend payout per share. For example, if the stock price equals $38, multiply $38 by 0.034 to get $1.29 per share.

3. Multiply the dividends per share by the number of shares owned to calculate the total dividend payment. In this example, if you own 140 shares, multiply $1.29 by 140 to get a total dividend payment of $180.60.

About the Author

Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

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