i What this calculator does
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
Every field has a working default, so the calculator produces a result the moment the page loads. Replace the defaults with your own figures and the output updates when you press the button.
- 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.
The breakdown below the result shows every step of the arithmetic, so you can check the figure rather than trust it. The formula panel names each input as it is used, which is useful if you want to reproduce the calculation in a spreadsheet.
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.
Embed this calculator
Free to use on your own site. Copy the code below and paste it where you want the calculator to appear.
<iframe src="https://www.tradeanswers.co.za/embed/dividend-yield-calculator.html"
width="100%" height="750" style="border:0;max-width:520px"
title="Risk Per Trade Calculator - TradeAnswers" loading="lazy"></iframe>Calculator by TradeAnswers. More at the widget library.
