SnapCalc

Dividend Income Calculator

Calculate projected annual dividend income from your share portfolio, including franking credits for Australian investors.

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Check ASX dividend yield for your stocks. AU market avg ~4.5%

100% for fully franked (most large ASX stocks), 0% for unfranked

How many years to calculate compounding DRP growth

How to Use

1. Enter the total value of your share portfolio 2. Enter the average dividend yield — check each stock's yield on the ASX or your broker app 3. Set the franking level — most large Australian companies (CBA, BHP, Woolworths) pay fully franked dividends 4. Select your marginal tax rate 5. Choose DRP to see compounding growth over time

Franking credits explained: Australian companies pay 30% corporate tax before distributing dividends. Fully franked dividends include a tax credit that offsets your personal tax — meaning low-income earners may receive a refund.

Formula

Annual Dividend = Portfolio × Yield | Franking Credit = Dividend × Franking% × 30/70 | Net = Gross − Tax

Frequently Asked Questions

What is a good dividend yield?

The ASX average is around 4–5% (one of the highest in the world due to franking). Yields above 7–8% can signal a dividend at risk of being cut. REITs and infrastructure stocks often yield 5–7%.

How do franking credits work?

If a company pays 30% tax on profits, a fully franked dividend of $700 comes with a $300 franking credit (the tax already paid). Your total taxable income is $1,000 — you then pay your marginal rate and deduct the $300 credit already paid.

Should I take dividends as cash or reinvest (DRP)?

In accumulation phase, DRP builds wealth faster through compounding. In retirement, cash income is usually preferred. DRP also has tax implications as each reinvestment is a taxable event.