Dividend Yield Calculator
Calculate the dividend yield, annual income, and total return from any investment. Essential for income investors comparing dividend stocks and funds.
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 (2026/27) before dividend tax applies. Above that: Basic rate taxpayers pay 10.75%, Higher rate 35.75%, 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.
When to Seek Financial Advice
Calculator results provide estimates based on stated inputs and should not replace professional financial advice for significant decisions. Free, regulated financial guidance is available through MoneyHelper (moneyhelper.org.uk, 0800 011 3797) for general money queries. Regulated independent financial advisers (IFAs) — find one at unbiased.co.uk — provide personalised advice on mortgages, pensions, investments, and insurance. Advice fees are typically £150-350 per hour or a percentage of assets
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