Dividend Yield Calculator

In India, a dividend yield of 2-4% is considered moderate, while above 4% is high. However, an unusually high dividend yield may indicate a falling stock price rather than generous dividends. Compare the yield with FD rates (7-8%) and the sector average for context.

Most Indian companies pay dividends once a year (final dividend) or twice a year (interim + final dividend). Some companies like Infosys and TCS pay quarterly dividends. The frequency depends on the company's policy and profitability.

Dividends are not guaranteed and depend on the company's profitability and board decisions. Companies can reduce, skip, or increase dividends at any time. Look for companies with a consistent dividend payment history of 10+ years for more reliable income.

FD interest is guaranteed while dividends are not. However, dividend stocks offer potential capital appreciation in addition to income. A ₹1 lakh investment in a stock yielding 3% gives ₹3,000/year in dividends plus potential price gains, while an FD at 7% gives ₹7,000 but no capital appreciation.