i What this calculator does
Quick answer: Work out a share's dividend yield, the income after 20% withholding tax, and your yield on cost from what you actually paid. With the default inputs (annual dividend per share 8.50, current share price 142.00), it returns dividend yield of 5.99%.
The dividend yield is the annual dividend as a percentage of the share price. It tells you what income the share produces at today's price, which is not the same as what it produces on what you paid.
In South Africa the distinction matters twice over, because dividends from local companies carry 20% withholding tax deducted at source. The yield you see quoted is gross; the yield in your account is lower unless the shares sit inside a tax-free savings account.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
How to use the Dividend Yield Calculator
It works immediately. Change one value, leave the others, and the difference belongs to that change.
- 1. Annual Dividend Per Share (R)
- 2. Current Share Price (R)
- 3. Your Purchase Price (R) For yield on cost
- 4. Number of Shares
- 5. Account Type
The result panel reports:
- Dividend Yield Gross, at the current price
- Yield on Cost On what you actually paid
Alongside the headline figures, the calculator reports gross annual income, withholding tax, net annual income, monthly equivalent. Those are the numbers that usually explain why the headline result came out where it did.
You can see how the number was built: each step appears beneath the answer.
Common results
What the calculator returns as the annual dividend per share changes, with every other input at its default (current share price 142.00, your purchase price 98.00, number of shares 500, account type Ordinary account, 20% withholding).
| Annual Dividend Per Share | Dividend Yield | After-Tax Yield | Yield On Cost |
|---|---|---|---|
| R2.5 | 1.76% | 1.41% | 2.55% |
| R5 | 3.52% | 2.82% | 5.10% |
| R10 | 7.04% | 5.63% | 10.20% |
| R20 | 14.08% | 11.27% | 20.41% |
| R40 | 28.17% | 22.54% | 40.82% |
| R75 | 52.82% | 42.25% | 76.53% |
Figures used in this calculator
The South African constants this calculator relies on, with the page that holds the current value and the date it was last verified.
- Dividends Tax: 20% withheld for residents. Source: Dividend Withholding Tax by Country (verified 27 September 2026).
- Interest exemption: R23,800 a year under 65. Source: Interest and Dividend Exemptions (verified 29 September 2026).
How the calculation works
The calculator takes five inputs: Annual Dividend Per Share, Current Share Price, Your Purchase Price, Number of Shares and Account Type. Your Purchase Price: For yield on cost. The yield is R8.50 / R142.00 = 5.99%. The yield on cost is R8.50 / R98.00 = 8.67%. The gross income is R8.50 x 500 = R4 250.00. The after tax is R4 250.00 x (1 - 20%) = R3 400.00. The breakdown also lists dividend per share, current price, your cost and shares held.
A worked example in rand
With the default inputs (annual dividend per share R8.50, current share price R142.00, your purchase price R98.00, number of shares 500 and account type Ordinary account, 20% withholding), the calculator returns a dividend yield of 5.99%, gross, at the current price. It also reports after-tax yield 4.79% and yield on cost 8.67%. Double the annual dividend per share to 17 and the dividend yield moves from 5.99% to 11.97%, the after-tax yield moves from 4.79% to 9.58% and the yield on cost moves from 8.67% to 17.35%.
How to read the result
With these inputs the calculator's own verdict reads: "Withholding tax takes R850.00 of the R4 250.00. The same shares in a TFSA would keep it." The verdict changes as the inputs cross the thresholds the calculator uses, and it is the fastest way to see which side of them you are on. Compare yields after tax and after the payout ratio: a 9% yield from a company paying out all of its earnings is less secure than a 4% yield at a 40% payout. The background to this calculation is in Interest and Dividend Exemptions.
The South African angle
Three things change the picture for a South African trader using the dividend yield calculator. Dividends from foreign shares are taxed at the source country's withholding rate first, often 15% after a treaty claim, and then reconciled by SARS, which the dividend withholding tax calculator handles country by country. Interest from South African banks is taxed as income after an annual exemption of R23,800, which makes a dividend taxed at 20% more attractive than interest for a high earner at the same yield. Shares held inside a tax-free savings account receive dividends free of the 20% tax, which is the single largest advantage of the account for an income investor. The figures behind these points, and the ones the dividend yield calculator itself uses, are on the dividend withholding tax by country table.
Spotted an outdated figure? If a rate, limit or formula in this calculator no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
See also: Bond Price, Yield and Duration Calculator
Frequently asked questions
What is a good dividend yield on the JSE?
Three to five percent gross is a normal range for a diversified set of large listed companies. Yields well above that are usually a signal rather than a bargain: the market has marked the price down because it expects the dividend to be cut.
What is yield on cost?
The dividend divided by what you originally paid rather than by today's price. If a share you bought at R98 now pays R8.50, your yield on cost is 8.7% even though someone buying today at R142 gets 6%. It measures your position, not the share.
How is dividend tax handled in South Africa?
Local dividends carry 20% withholding tax deducted before the money reaches you. You do not pay it separately, and it does not depend on your income bracket. Inside a tax-free savings account it does not apply at all.
Are REIT distributions taxed the same way?
No. Distributions from South African real estate investment trusts are taxed as ordinary income at your marginal rate rather than at the flat 20%. Whether that is better depends entirely on your bracket.
Should I chase the highest yield?
It is the most common mistake in income investing. A high yield usually reflects a falling price, and the two things that move a yield up are a rising dividend or a falling share. Checking the payout ratio tells you which.
What is the difference between trailing and forward yield?
Trailing uses dividends actually paid over the past twelve months. Forward uses the most recently declared annualised dividend, which is what you will receive if nothing changes. Forward is more useful after a dividend increase or cut.
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