Dividend Yield: A financial ratio that indicates how much a company pays out in dividends each year relative to its share price. Dividend yield is represented as a percentage and can be calculated Finally, divide the initial stock price by the result to find the new stock price. For example, say a company has 1 million shares, worth $100 each before the dividend. If the company declares a 10 percent stock dividend, divide 10 by 100 to get 0.1. Then, add 0.1 to 1 to get 1.1. How to Calculate the Share Price Based off Dividends. The dividend discount model values a stock based on its dividends. It uses a discount rate to convert all of the stock's expected future dividend payments into a single, theoretical stock price, which you can compare to the actual market price. If the market