Dividend Calculator
See how your dividends could compound over time, and what they could be paying you.
Your investment
Franking & tax
Growth assumptions
Dividends
General information only - not financial or tax advice. Franking credit calculations use a 30% company tax rate. Projections assume constant growth rates and do not account for brokerage, capital gains tax events, or changes in dividend policy. Actual outcomes will differ. Past performance is not a reliable indicator of future returns.
What is dividend yield?
Dividend yield measures the annual income you receive from a share relative to its current price. It is one of the most useful signals for income-focused investors.
A higher yield means more income per dollar invested – but a very high yield can also signal a falling share price or an unsustainable payout.
How to calculate dividend yield
The formula is straightforward:
For example, a company trading at $50 paying $2 per share annually has a yield of 4%.
Dividend yield vs payout ratio
These two metrics tell different but complementary stories about a company’s dividend policy:
Dividend Yield
Measures the income return on your investment based on the current share price. Changes when the price moves, even if the dividend itself stays flat.
Payout Ratio
Measures the income return on your investment based on the current share price. Changes when the price moves — even if the dividend itself stays flat.
Inside the Marcus Today membership
Tired of second guessing your investment decisions?
Clear thinking, daily updates, and portfolios you can follow. All in one place.
Understanding franking credits
Australian companies pay tax at 30% before distributing dividends. Franking credits represent the tax already paid at the company level, which you can use to offset your personal tax liability.
If your marginal tax rate is lower than 30%, you can claim the difference as a cash refund from the ATO. This makes fully franked dividends significantly more valuable than their headline yield suggests.
A fully franked 4% dividend is worth considerably more to most Australian investors than an unfranked 4% dividend from an international stock
The calculator above accounts for franking automatically based on your marginal tax rate.