Dividend Yield Calculator Australia 2025-26
Check what your shares are actually paying you.
Calculate Australian dividend yield with AUD share price, cash dividends, franking context, annual income, grossed-up yield, and portfolio income.
Australia Dividend Yield Notes
Australian dividend yield can look different once franking credits, payout frequency, special dividends, and tax position are considered.
Use this version to compare cash yield, grossed-up yield, and annual income from ASX-style dividend assumptions.
Australian version note: this dividend yield keeps the calculation anchored to AUD amounts, local product names, Australian tax language, and the way banks, employers, agencies, or advisers usually describe the inputs.
Local cues stay visible where they matter: ATO, PAYG, superannuation, Medicare levy, stamp duty, kilometres, comparison rate, APRA, Centrelink, GST, and Australian-dollar results are not rewritten into overseas vocabulary.
Use the output as an Australian estimate first, then sanity-check it against local quotes, lender criteria, government thresholds, state rules, or professional advice before relying on the number.
Gross yield only. Grossed-up value includes 30% franking credit.
Select the question that matches where you are right now.
Use this calculator to plan and model your financial situation.
Compare scenarios by adjusting inputs. Use the precision bar to reveal more detail. Results update in real time as you type.
Not professional financial advice, not a guarantee of any specific outcome, and not a substitute for qualified advice for significant decisions.
All calculations run entirely in your browser using standard formulas. No data is sent to any server.
The inputs that most influence this result are shown in the breakdown above. Even small changes to key variables can have a significant compound effect over time.
Longer periods amplify both growth and cost. Starting one year earlier or later can change a financial outcome by more than you expect.
Even a 1% change in rate can materially change the outcome over a long period. Use Standard or Advanced mode to model rate sensitivity.
Most financial variables have a non-linear relationship with the result — they compound. The sensitivity table in Advanced mode shows this clearly.
To improve this result, focus on the inputs with the highest leverage. Small changes to the right variable often produce much larger outcomes than large changes to less important ones.
Adjust inputs one at a time. The one that moves the result most is your binding constraint — focus effort there first.
Use the Scenario A/B feature in Advanced mode to compare two situations side by side.
Many financial decisions benefit from timing. Starting earlier, fixing a rate at the right moment, or clearing a debt before applying for new credit can each produce significant improvements.
Depending on what you are planning, these are the natural next steps after reviewing this result.
This calculator shows one part of a financial decision. The related calculators below help you model adjacent factors.
Switch to Standard or Advanced mode and use the scenario comparison tool to model best, expected, and worst case.
For decisions involving significant amounts of money, use this result as a starting point for a conversation with a qualified financial advisor.
How dividend yield and franking credits are calculated
Dividend yield formula
Dividend yield = (Annual dividend per share ÷ Share price) × 100. If a company pays $0.80 per share annually and the share price is $20, the yield is 4.0%. This is the gross (pre-tax) yield.
Franked vs unfranked dividends
Australian companies pay company tax (30% for large companies) before distributing dividends. Fully franked dividends come with a franking credit that represents the tax already paid. Shareholders can claim this credit against their own tax liability — effectively receiving the dividend as if it had not been taxed at the company level.
| Cash dividend | Franking credit (30%) | Grossed-up dividend | Effective yield at 4% |
|---|---|---|---|
| $0.70/share | $0.30/share | $1.00/share | 5.71% grossed-up |
| $100 cash | $42.86 credit | $142.86 gross | — |
| $1,000 portfolio income | $428.57 credit | $1,428.57 gross | — |
ASX dividend yield examples and top-yielding sectors — 2025
Dividend yields as of early 2025. Yields change with share price movements.
| Sector | Typical yield range | Franking | Notes |
|---|---|---|---|
| Big 4 banks (CBA, ANZ, NAB, WBC) | 4.5–6.5% | Fully | Stable, high payout ratio |
| Resources (BHP, RIO, FMG) | 4–8% | Partially/Fully | Commodity price dependent |
| REITs (property trusts) | 4–6% | Unfranked | Distributions not dividends |
| Infrastructure (APA, Transurban) | 3.5–5% | Partial | Long-term contracts |
| Healthcare (CSL, Ramsay) | 0.5–2.5% | Fully | Growth focus, low yield |
| ASX 200 average | 3.5–4.5% | Partially | Higher than most global markets |
How franking credits boost your after-tax dividend return
Why Australia has franking credits
Australia's dividend imputation system prevents double taxation — once at the company level and again when shareholders receive dividends. Franking credits represent the tax already paid by the company. Shareholders receive the credit and can offset it against their own income tax.
The franking credit calculation
For a $700 fully franked dividend from a company paying 30% tax: Franking credit = $700 × (30 ÷ 70) = $300. Grossed-up dividend = $700 + $300 = $1,000. If your marginal rate is 32.5%, your tax on $1,000 is $325, minus the $300 credit = only $25 net tax. Effective yield on a 4% share is approximately 5.6% after franking.
Tax refund for low-income investors
If your marginal tax rate is below 30%, the ATO refunds the difference in franking credits as cash. A retiree with no taxable income receives the full $300 franking credit as a tax refund — the cash dividend + refund equals the full grossed-up dividend.
Dividend Reinvestment Plans — how compounding dividends works
What is a DRP?
A Dividend Reinvestment Plan (DRP) automatically uses your cash dividend to purchase additional shares in the same company, usually at a small discount to market price (1–3%). Over time, more shares generate more dividends — classic compounding.
DRP vs cash dividends
Taking dividends as cash gives immediate income. A DRP grows your shareholding without brokerage fees. The right choice depends on whether you need income now or want to build wealth. Many investors use DRP in accumulation phase and switch to cash dividends in retirement.
Tax on DRP shares
DRP shares are treated as if you purchased them at the dividend date market price — even though you received them 'for free.' The shares have a cost base equal to their market value on the dividend date, plus any tax paid on the dividend. This affects your CGT calculation when you eventually sell.
Tax treatment of dividends in Australia
Dividends are assessable income
All dividends — whether taken as cash or reinvested — are assessable income in the year they are paid (not the year they are received). Include the grossed-up dividend amount (cash + franking credit) in your tax return, then claim the franking credit as a tax offset.
Dividend income and Medicare levy
Dividends are included in your assessable income for Medicare levy surcharge purposes. A retiree receiving $40,000 in dividends may become liable for the 1–1.5% Medicare levy surcharge if total income exceeds the $93,000 threshold and they lack private hospital cover.
PAYG instalments for dividend investors
If your tax withholding from salary is insufficient to cover dividend income, the ATO may require quarterly PAYG instalments. This is common for investors with significant dividend portfolios whose total tax exceeds withholding.
❓ Frequently asked Frequently asked questions
What is dividend yield?
Dividend yield is annual dividends per share divided by the current share price, expressed as a percentage. A share paying $0.80/year trading at $20 has a 4% yield. Yield rises when the share price falls and falls when the share price rises.
What is a franking credit?
A franking credit represents tax already paid by the company at the 30% corporate rate before distributing a dividend. Shareholders claim this credit against their own tax. On a $700 fully franked dividend, the franking credit is $300 — bringing the grossed-up dividend to $1,000.
Why does Australia have high dividend yields compared to other countries?
Australia's dividend imputation system encourages high dividend payout ratios, as the tax efficiency of franked dividends rewards shareholders. ASX yields (3.5–4.5% average) are significantly higher than US (1.5%) or European (2.5%) averages.
Do I pay tax on dividends?
Yes — dividends are assessable income. You include the grossed-up dividend in your tax return and claim the franking credit as an offset. If your marginal rate is below 30%, you receive a cash refund of excess franking credits.
What is the difference between dividend yield and total return?
Dividend yield measures income only. Total return includes capital gain (share price rise) plus dividends. A growth company might have a 1% yield but 15% total return due to price appreciation. A high-yield bank might have a 6% yield but flat share price, for a 6% total return.
Where these figures come from
Savings and interest figures on this page are drawn from the Reserve Bank of Australia (cash rate and published deposit averages), APRA (the deposit-taker regulator), and ASIC MoneySmart (consumer guidance).
- RBA cash rate — RBA — Cash Rate.
- Deposit interest-rate data — RBA — Retail Deposit and Investment Rates (F4).
- Financial Claims Scheme (deposit guarantee up to $250k) — APRA — Financial Claims Scheme.
- Compound interest & savings strategy — ASIC MoneySmart — Saving.
- Inflation & CPI — ABS — Consumer Price Index.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.