How To Calculate Dividend Per Share From Dividend Yield? – With Examples

In this article, we will see how you can calculate dividend per share from dividend yield of the stock. We will also see a few real-life examples of calculating dividend per share from dividend yield.

To calculate the amount of dividend per share of a particular stock from its dividend yield, you need to know two necessary metrics of that stock.

1. Dividend Yield Percentage of The Stock.
2. Share Price of The Stock.

You can find these two metrics of any stock quite easily. The Dividend Yield Percentage and the Share Price of any stock are readily available on Google.

After jotting down the dividend yield and stock price, to calculate dividends per share from dividend yield, you need to apply basic 5th-standard math.

Just multiply the Share Price of the stock by the Dividend Yield percentage.

The value that comes out from that multiplication is the amount of dividend you will receive per share in a whole year.

Formula For Calculating Dividend Per Share From Dividend Yield

The formula for calculating Dividend Per Share using Dividend Yield is –

Current Market Price Of The Stock * Dividend Yield Of The Stock = Dividend Per Share Of The Stock

Let us understand the above formula with an example –

If the cost of a single share of company ‘ABC’ is $100 and the dividend yield is at 2.5%, to calculate the company’s dividend per share, you need to multiply $100 by 2.5%.

For an easier calculation, convert the dividend yield percentage into decimal numbers.

To convert the dividend yield percentages into decimal numbers, move the decimal point two numbers forward.

E.g. – The decimal value of 2.5% is 0.025. The decimal value of 4.9% is 0.049. The decimal value of 17.32% is 0.1732. So on and so forth. We hope you get the idea.

So,

$100 * 0.025 = $2.5

The dividend per share of company ‘ABC’ is $2.5.

Now using the above knowledge, let us see some examples of how to calculate dividends per share from the dividend yield of some real companies.

How To Calculate Dividends Per Share From Dividend Yield Of Apple (NASDAQ: AAPL)?

On the 6th of February, 2023, shares of Apple were trading at $151.73. The dividend yield of Apple at that time was 0.61%.

To calculate how much dividend you will receive per share from Apple, you must multiply Apple’s stock price by the dividend yield.

First, let us convert the dividend yield percentage into decimal numbers.

The decimal number of 0.61% is 0.0061.

So, the Dividend Per Share comes out to be –

$151.73 * 0.0061 = $0.925

And as you can see in the picture below, the dividends of Apple for the last four quarters add up to $0.92.

How To Calculate Dividends Per Share From Dividend Yield Of Coca-Cola (NYSE: KO)?

On the 7th of February, 2023, shares of Coca-cola were trading at $60. And the dividend yield of Coca-cola was 2.93%.

To calculate how much dividend you will receive per share from Coca-cola, you need to multiply the stock price of Coca-cola by the dividend yield.

First, let us convert the dividend yield percentage into decimal numbers.

The decimal number of 2.93% is 0.0293.

So, the Dividends Per Share of Coca-cola comes out to be –

$60 * 0.0293 = $1.758

And as you can see in the picture below, the dividends of Coca-cola for the last four quarters add up to $1.76.

How To Calculate Dividends Per Share From Dividend Yield Of Altria Group (NYSE: MO)?

On the 7th of February, 2023, shares of Altria Group were trading at $46.65. And the dividend yield of Altria Group was 8.07%.

To calculate how much dividend you will receive per share from Altria Group, you need to multiply the stock price of Altria Group by the dividend yield.

First, let us convert the dividend yield percentage into decimal numbers.

The decimal number of 8.07% is 0.0807.

So, the Dividends Per Share of Altria Group comes out to be –

$46.65 * 0.0807 = $3.764

And as you can see in the picture below, the dividends of Altria Group for the last four quarters add up to $3.76.

That was it.

If you want us to calculate any other stock, kindly let us know in the comment section.

If this article answered your query and you were able to learn something from it, kindly Upvote us using the upvote button below. It motivates us to make more such helpful articles.

If you think your friends and family will benefit from such a list, please share this article with them.

Sharing is Caring, and it is just a click away! 🥰

And as usual, in the end, we will say –

Good Luck and Happy Investing. 😊

Disclaimer: We are not certified financial or stock analysts. The views, investment tips, presumptions, and calculations expressed on Moneypremier.net are not of the website or its management. This article is for Educational Purposes only. Moneypremier.net advises users to check with certified experts before making any financial decisions.