Dividend Yield Calculator
Calculate the dividend yield, annual income, and total return from any investment. Essential for income investors comparing dividend stocks and funds.
Dividend Investing
Yield vs Yield on Cost
Current yield = annual dividend ÷ current price. Yield on cost = annual dividend ÷ your purchase price. If you bought at £10 and the price is now £20, your yield on cost is double the current yield. Both metrics matter for different decisions.
Dividend Allowance (UK)
UK investors have a £500 annual dividend allowance (2024/25) before dividend tax applies. Above that: Basic rate taxpayers pay 8.75%, Higher rate 33.75%, Additional rate 39.35%. Dividends inside a Stocks & Shares ISA or SIPP are tax-free.
Dividend Sustainability
A high yield can signal risk — check the payout ratio (dividends ÷ earnings). A payout ratio above 80% is often unsustainable. A dividend yield above 6–7% warrants extra scrutiny as it may reflect market concern about a cut.
Related products on Amazon
As an Amazon Associate we earn from qualifying purchases.