Dividend Yield Calculator

Dividend yield tells you how much cash a share pays each year compared with what it costs today. It uses the annual dividend per share (every payout of the year added together) and the current share price. The calculator then adjusts it for dividend tax, for your own buy price, and checks it against earnings.

A share trades at Rs 150.00, paid Rs 12.00 in dividends over the year and earned Rs 30.00 per share. You bought it at Rs 100.00. You are a filer, and the company is an ordinary listed one.

For comparison, a 12-month T-bill gave 12.89% at the October 28, 2026 auction, which is about 10.96% after a filer's tax. The T-bill return is fixed if held to maturity. The dividend can be raised or cut, and the share price can rise or fall, so the comparison is a reference point and not a verdict. The T-bill calculator works out the T-bill side in detail.

The yield on most screens is a trailing yield: it divides dividends already paid by today's price. It is a fact, but it looks backwards. A forward yield divides the dividend you expect over the next twelve months by the price. That is a forecast, and it is only as good as the forecast. Where a company has just announced a higher or lower payout, the forward figure can differ a lot from the trailing one. Edit the dividend per share in the calculator to try a forward case, and see the dividend discount model for valuing a stream of growing dividends.

Yield is a fraction, so it rises when the price falls. A share that drops sharply can show a high yield for exactly that reason, while the market is doubting that the dividend will continue. Before leaning on a high yield, look at four things:

• Payout ratio and cover. A payout above 100% (cover below 1) means the company paid out more than it earned in that period.
• One-off payments. A special dividend or a large final payout in one year inflates the trailing yield. Check the payout history on the company page.
• Business cycle. Dividends of oil and gas, fertilizer and cement companies move with commodity prices, gas supply and demand. Last year's payout is not a promise.
• Price trend. A falling price with an unchanged dividend raises the yield without any improvement in the business.

Yield counts the cash a share pays. Your total return also includes what happens to the price. A share bought at Rs 150.00 that pays Rs 12.00 and then trades at Rs 135.00 has returned -2% before tax, even though its yield was 8%: the 10% price fall is bigger than the dividend. In the other direction, a share with a low yield and a rising price can return more than a high yielder whose price drifts down. To measure what a stock actually returned over a period, with dividends added back, use the stock return calculator, and read the dividend versus growth stocks guide for how the two styles differ.

Dividend yields on the PSX have often been higher than those in many developed markets. Two facts help explain it. Many large PSX companies pay out most of what they earn, and interest rates in Pakistan are high: the State Bank policy rate is 12% from October 27, 2026, and inflation was 10.3% in September 2026. Investors can earn a high return on government paper, so a share has to offer more to compete. Read a PSX yield against those rates, not against yields in markets with near-zero interest rates. To see the effect of reinvesting dividends, try the DRIP calculator, and to plan income use the dividend income calculator.