Dividend Calculator Australia
Calculate your dividend income, franking credits, and tax implications for Australian shares. Understand how imputation credits affect your after-tax returns.
Calculate Dividend Returns
ASX average: 3-5%
Popular ASX Dividend Stocks
*Yields vary. Check current data.
Franking Credit Formula
Franking Credit =
Dividend × Franking% × (30/70)
For a fully franked $100 dividend: $100 × 1.0 × 0.4286 = $42.86 credit
45-Day Rule
To claim franking credits, you must hold shares "at risk" for at least 45 days (not counting buy/sell dates). This prevents dividend stripping.
How Dividend Investing Works in Australia
Dividend investing is a popular strategy for Australian investors seeking regular income. Australia's unique dividend imputation system makes fully franked dividends particularly attractive, as shareholders receive credit for tax already paid by the company.
The Franking Credit System
When an Australian company pays tax on its profits at the 30% corporate rate, it can attach franking credits to dividends paid to shareholders. These credits represent tax already paid, preventing the same income being taxed twice.
Example: $1,000 Fully Franked Dividend
- Cash dividend received: $1,000
- Franking credit: $1,000 × 30/70 = $428.57
- Grossed-up dividend (taxable): $1,428.57
- Tax at 30% marginal rate: $428.57
- Less franking credit offset: -$428.57
- Net tax payable: $0.00
- Net income after tax: $1,000.00
Dividend Yield Calculation
Dividend yield measures the annual dividend income relative to the share price:
Dividend Yield = (Annual Dividend per Share / Share Price) × 100 For example, if a stock pays $5.00 per year in dividends and trades at $100, the yield is 5%. When comparing yields, also consider the franking percentage—a 4% fully franked yield may deliver better after-tax returns than a 5% unfranked yield.
Grossed-Up Yield
The grossed-up yield includes the value of franking credits:
Grossed-Up Yield = Dividend Yield × (1 + Franking % × 30/70) A 5% fully franked yield has a grossed-up yield of approximately 7.14%, reflecting the total pre-tax return.