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How is dividend yield calculated?

EugeneBy Eugene
4–6%
a solid, sustainable dividend yield for an SGX blue chip or REIT.

Dividend yield tells you how much income a stock pays each year relative to its price. It's the single most useful number for comparing dividend stocks — a S$50 share and a S$2 share can't be compared on dividend amount alone, but their yields put them on the same footing.

The formula

Dividend yield (%) = Annual dividend per share ÷ Share price × 100

Take the total dividends a company paid over a year, divide by the current share price, and multiply by 100 to get a percentage. That's all there is to it.

A worked example

Say a stock trades at S$2.00 and paid S$0.10 in dividends over the past 12 months:

S$0.10 ÷ S$2.00 × 100 = 5.0%

So for every S$1,000 invested at that price, you'd receive about S$50 a year in dividends. Notice what happens if the share price rises to S$2.50 while the dividend stays the same: the yield falls to 4.0%, because you're paying more for the same payout. Yield and price move in opposite directions.

Trailing vs forward yield

You'll see two versions of the number:

  • Trailing yield uses the dividends actually paid over the last 12 months. It's factual and can't be dressed up.
  • Forward yield uses the dividends a company is expected to pay over the next 12 months. It's an estimate — and it's wrong if the company later cuts or raises the payout.

StockKaki shows the trailing 12-month yield on every dividend stock page — the real, paid figure — so you're comparing facts, not forecasts.

What's a good dividend yield in Singapore?

Roughly 4–6% is a solid, sustainable yield for an SGX blue chip or REIT. Singapore is unusually kind to dividend investors: there's no tax on dividends and no capital-gains tax, so the yield you see is close to the yield you keep. You can compare every payer on the best dividend stocks page, or the typically higher-yielding property plays on the Singapore REITs page.

When a high yield is a warning, not a bargain

A very high yield — say above 10% — deserves a second look rather than an instant buy. Two common reasons:

  • The price fell for a reason. Because yield = dividend ÷ price, a sinking share price mechanically pushes the yield up. This is the classic "yield trap" — the market may be pricing in a coming dividend cut.
  • A one-off special dividend. A single large payout inflates the trailing yield for a year, then disappears — so the "normal" yield is lower than it looks.

Always check whether the dividend is sustainable: is it covered by earnings, and has it been paid consistently? Every stock page shows the full dividend history and upcoming ex-dates, so you can judge the track record rather than the headline number.

Put it to use

Compare every SGX payer on the same trailing-yield basis, and check the payout is sustainable before you buy.

See every SGX payer ranked by yield →
Eugene
Eugene
A regular Singaporean dad who got tired of cluttered, confusing finance sites
Common questions
+What is a good dividend yield in Singapore?
Around 4–6% is a solid, sustainable yield for an SGX blue chip or REIT. Because Singapore has no tax on dividends and no capital-gains tax, the yield you see is close to what you keep. Yields much above 10% warrant a closer look — they can signal a falling price or a one-off special dividend.
+Is a higher dividend yield always better?
No. A very high yield often means the share price has fallen (a "yield trap"), or that a one-off special dividend has temporarily inflated the trailing figure. What matters is whether the dividend is sustainable — covered by earnings and paid consistently.
+Does StockKaki use trailing or forward dividend yield?
Trailing 12-month yield — the dividends actually paid over the last year, divided by the current price. It is factual and lets you compare counters on the same basis, rather than relying on a forecast.