Dividend Yield Formula Explained, With Examples
Every dividend yield result comes from one formula. Once you understand what goes into it, you can sanity-check any figure you are given, whether by an employer, a bank, a teacher or another website.
The formula
Yield = annual dividend ÷ price × 100.
What each input means
- Annual dividend per share (S$): the value you enter in the calculator.
- Share price (S$): the value you enter in the calculator.
Example
For example, with these inputs:
- Annual dividend per share (S$): 0.18
- Share price (S$): 3.6
the calculator returns:
- Dividend yield: 5.00%
How the result changes
The table keeps the other inputs at their example values and changes annual dividend per share (s$).
| Annual dividend per share (S$) | Dividend yield |
|---|---|
| 0.18 | 5.00% |
| 0.09 | 2.50% |
| 0.14 | 3.89% |
| 0.22 | 6.11% |
| 0.27 | 7.50% |
Why it matters
Interest rates, instalments and returns compound over years, so a small difference in rate or tenure turns into thousands of dollars. Working the numbers out yourself makes it easier to compare bank offers, avoid expensive debt and plan savings goals.
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
Interest in Singapore is quoted in several ways. Mortgages and savings accounts use effective annual rates, while car loans and many personal loans are advertised at flat rates that look much lower than their true cost. Banks must disclose the effective interest rate, and comparing on that basis gives a fair picture.
Calculators make it easy to compare scenarios side by side: a shorter tenure versus a lower instalment, a higher deposit versus more cash in hand, or paying down debt versus investing. Seeing the total cost, not just the monthly figure, usually makes the better choice obvious.
Related calculations
- Additional Registration Fee (ARF) Calculator: Calculates the tiered ARF for cars registered in Singapore.
- Car Depreciation Calculator: Works out the yearly depreciation buyers in Singapore use to compare used cars.
- Loan Calculator: Calculates repayments for an amortising loan.
- Personal Loan Calculator (Flat Rate): Singapore banks advertise personal loans at flat rates.
Use the Dividend Yield Calculator to plug in your own numbers.
Run your own numbers: Dividend Yield Calculator