Dividend Yield on Cost Calculator
Estimate dividend yield on cost using your original purchase price and annual dividend per share.
Last Updated: May 2026Yield on Cost Formula
Example Yield on Cost Calculation
Suppose you bought 100 shares at $40 and the dividend is $2 per share annually. Annual income is $200, and yield on cost is 5%.
Yield on cost measures income relative to what you originally paid, not the current market price.
- Enter shares owned.
- Enter original cost per share.
- Enter annual dividend per share.
- Review the income and yield on cost result.
Yield on Cost Comparison Example
A growing dividend can make yield on cost rise over time even if the original purchase price stays the same.
| Original Cost | Annual Dividend | Yield on Cost |
|---|---|---|
| $40 | $2.00 | 5% |
| $50 | $2.00 | 4% |
| $25 | $2.00 | 8% |
How to Interpret the Result
Yield on cost is useful for income investors tracking cash flow against original capital.
It does not tell you whether the stock is a good buy at today’s price.
What This Calculator Does Not Include
This calculator does not include dividend cuts, reinvestment, taxes, or changing market value.
It is a simplified income example only.
Yield on Cost FAQ
What is yield on cost?
Yield on cost compares annual dividend income with the amount you originally paid for the shares.
Is yield on cost the same as dividend yield?
No. Dividend yield uses current price, while yield on cost uses original purchase cost.
Can yield on cost go up over time?
Yes. If dividends rise while your original cost stays the same, yield on cost can increase.
Are taxes included?
No. Taxes and withholding are not included.
Does dividend growth matter?
Yes. Growing dividends can push yield on cost higher over long periods.
Is this a guarantee of future income?
No. It is only a simplified educational example.
This calculator is for educational dividend income examples only and does not guarantee future payouts.