Dividend Yield on Cost Calculator

Understanding your dividend yield on cost is one of the most practical ways to measure the long‑term performance of a dividend investment. It tells you how much dividend income you’re earning each year relative to the original amount you invested, not just today’s stock price.

On this page, you’ll find a Dividend Yield on Cost Calculator that lets you:

• Enter multiple stock purchases over time

• Pull in real dividend data (when available)

• Model future dividend growth and optional dividend reinvestment (DRIP)

• See an interactive chart of your yield on cost, from your first year of investing out to 10 years in the future
  

If you’re building a long‑term dividend portfolio, this tool is meant to help you make more informed, data‑driven decisions about where you put your capital.

What Is Dividend Yield on Cost?

Most investors are familiar with current dividend yield:

Current Dividend Yield=Annual Dividend per Share/Current Share Price

Dividend yield on cost, however, uses your original purchase price (or blended cost basis if you bought in multiple times):

Dividend Yield on Cost=Annual Dividend Income/Total Amount You Originally Invested​

In plain language, yield on cost answers the question:

“For every dollar I originally invested in this stock, how many cents of dividend income am I earning each year now?”

Over time, if the company grows its dividend and you bought at a reasonable price, your yield on cost can become dramatically higher than the current yield new investors see today.

Why Dividend Yield on Cost Matters

Yield on cost is especially useful for long‑term, income‑focused investors because it:

1. Measures progress over time
   It shows how your dividend income has grown relative to your original cash outlay—not just today’s share price.

2. Rewards patient holding and dividend growth
   Companies that consistently raise their dividends can turn a modest starting yield into a very attractive yield on cost over a decade or more.

3. Helps you compare past investment decisions
   You can compare yield on cost across different holdings and see which companies have delivered the strongest long‑term dividend growth.

4. Supports retirement income planning
   If your goal is to live off dividends, yield on cost helps you assess whether specific positions are pulling their weight in your income plan.
   

That’s where this dividend yield on cost calculator comes in: it does the heavy lifting on the math so you can focus on the bigger decisions.

How to Use This Dividend Yield on Cost Calculator

The calculator is designed to be straightforward, even if you’re not a spreadsheet person. Here’s how to use it effectively.

Step 1: Enter Your Stock and Purchases

Start with the basics:

1. Stock ticker symbol
   Enter the ticker for the stock you’re analyzing (for example, AAPL, JNJ, or KO).

2. Add your purchase lots
   For each time you bought the stock, add a row with:

   • Purchase date

   • Number of shares purchased

   • Price per share (if available, to help estimate your cost basis)

3. Add multiple purchases
   If you’ve built the position over time, use the Add Purchase button to enter each buy. The calculator will combine them into a total cost basis and total shares held.
   

Step 2: Choose Data Source for Dividends

The tool is designed to work with either API data or manual assumptions:

• If available, it will try to use real stock dividend data from a free API to estimate:

  • Current annual dividend per share

  • Historical dividend trends

• If the API can’t provide everything needed, you can:

  • Enter a current annual dividend per share manually

  • Enter an expected annual dividend growth rate to model the future

This flexibility allows the calculator to function as both a dividend calculator and a dividend yield calculator, whether or not live data is available.

Step 3: Set Your Dividend Growth and DRIP Assumptions

You can then refine the scenario:

• Expected Annual Dividend Growth Rate (%)
  If future dividend forecasts aren’t available, input your own growth assumption (for example, 5% per year). The calculator will project how dividends and yield on cost evolve over time.

• Reinvest Dividends (DRIP) – Yes/No

  • If No, the number of shares stays constant, and only the dividend per share grows.

  • If Yes, the calculator assumes dividends are reinvested to buy additional shares, which can accelerate growth in both your dividend income and yield on cost.
    

Step 4: Run the Calculation

Click Calculate and the app will:

• Combine all your purchase lots into:

  • Total cost basis

  • Total shares held

• Estimate:

  • Current annual dividend income

  • Current dividend yield on cost

• Generate a year‑by‑year projection from:

  • Your first year of investment

  • Through the current year

  • And out 10 years into the future

The result is a rich view of how your investment’s income potential may evolve under your chosen assumptions.

Limitations and Assumptions

No calculator can fully predict the future, and this stock dividend calculator is no exception. Keep these assumptions and limitations in mind:

• Dividend growth may not be linear
  The model often assumes a constant growth rate or uses available data to approximate trends. Real dividend policies can change.

• Dividends are not guaranteed
  Companies can cut, freeze, or eliminate dividends at any time. Past growth is not a promise of future growth.

• Prices used for DRIP are simplified
  When modeling dividend reinvestment, the calculator may assume a constant or approximated price for share purchases. Actual reinvestment prices will vary.

• Taxes and fees are not included
  The numbers shown are gross of taxes, transaction costs, and other account‑specific factors.

Treat this tool as a planning aid and education tool, not as investment advice. Always do your own research and consider consulting a qualified professional before making financial decisions.