How this calculation works
Gross annual cash dividends equal invested value × yield. Deduct the chosen withholding rate and divide net annual income by 12 for a monthly average.
A worked example
R100 000 at 4% cash yield gives R4 000 gross. At standard 20% dividends tax, net income is R3 200 a year.
Assumptions & limitations
- For ordinary local cash dividends. REIT distributions, foreign dividends, treaty relief, special corporate transactions and capital gains need different tax treatment. Choose exempt only if you have confirmed a valid exemption; dividend payments are not guaranteed.
