Dividends and bonds

Dividend yield on shares and yield to maturity on bonds — with tax and the payments you actually receive

One address, two modes: the calculation and the article switch together, and a shared link keeps the mode

Dividend yield

8,58%

after 13% tax — 7,46% a year

Payment a year

25 578,00 ₽

declared 29 400,00 ₽ · tax 3 822,00 ₽

Package payback

10 years

invested 342 720,00 ₽

Dividend income by year

receivedtax

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10 years

Over 10 years the package brings 353 397,10 ₽ net — that is 103,1% of the money invested. The position itself stays yours.

By year

10 years

Year	Dividend/share	Declared	Tax	Received	Investment returned
1	24,50 ₽	29 400,00 ₽	−3 822,00 ₽	25 578,00 ₽	7,5%
2	26,22 ₽	31 458,00 ₽	−4 089,54 ₽	27 368,46 ₽	15,5%
3	28,05 ₽	33 660,06 ₽	−4 375,81 ₽	29 284,25 ₽	24%
4	30,01 ₽	36 016,26 ₽	−4 682,11 ₽	31 334,15 ₽	33,1%
5	32,11 ₽	38 537,40 ₽	−5 009,86 ₽	33 527,54 ₽	42,9%
6	34,36 ₽	41 235,02 ₽	−5 360,55 ₽	35 874,47 ₽	53,4%
7	36,77 ₽	44 121,47 ₽	−5 735,79 ₽	38 385,68 ₽	64,6%
8	39,34 ₽	47 209,98 ₽	−6 137,30 ₽	41 072,68 ₽	76,6%
9	42,10 ₽	50 514,67 ₽	−6 566,91 ₽	43 947,76 ₽	89,4%
10	45,04 ₽	54 050,70 ₽	−7 026,59 ₽	47 024,11 ₽	103,1%
Total	45,04 ₽ by the last year	406 203,56 ₽	−52 806,46 ₽	353 397,10 ₽	103,1% — paid back

Reference block: the method, a worked example and answers to common questions. It does not affect the calculation above.

How it is calculated

Dividend yield is the annual payment against the price you bought the share at: yield = annual dividend / purchase price * 100. It states what percentage of the money invested comes back as cash every year, whether the quote rises or falls.
The tax is withheld by the broker or the issuer — the amount that reaches the account is already net, so the calculator shows both figures: the headline yield and the one that actually gets to you. You pick the rate yourself: 13% and 15% are the two steps of the "other income" scale, and "No tax" covers the case where nothing is due. Rounding to the kopeck happens on every payment rather than at the end, so the ten-year total is the sum of ten real payments.
Dividend growth is your assumption, not a forecast: dividend of year N = dividend * (1 + growth)^(N-1). Nothing is reinvested — the chart shows a flow of cash rather than capital — so the payback is honest: it is the first year in which the accumulated net payments cover what the package cost. Leaving growth at zero makes every year equal, which is a valid scenario rather than an empty screen.
Bonds work differently: besides the coupon, the income includes the gap between the purchase price and par, and the money arrives on dates. So what is computed is the yield to maturity — the rate at which every future payment, discounted to today, equals the money you pay for the bond together with the accrued interest: price + accrued = sum of coupon / (1+y)^t + par / (1+y)^n.
The equation is solved numerically — by bisection on the rate per coupon period, to a tolerance of 1e-10 — and then restated as the effective annual rate: (1+y)^frequency - 1. The yield therefore does not depend on how many coupons a year the bond pays or on the dates falling neatly: the calendar is walked back from the maturity date, and only payments still ahead are counted.
You pay the accrued interest to the seller at purchase — it is part of the outflow and comes back with the very first coupon, which is why it has its own line in the package summary instead of being folded into the price. The tax is charged on the coupons and on the difference "par minus purchase price"; if the bond was bought above par that difference is negative, and that is a loss rather than a negative tax.

Worked example

Dividends: 1 200 shares at 285,60 ₽ — 342 720,00 ₽ invested, a dividend of 24,50 ₽ per share, 7% growth a year, 13% tax, a ten-year horizon. The yield is 8,58%, and 7,46% after tax. The first year declares 29 400,00 ₽, of which 3 822,00 ₽ goes in tax and 25 578,00 ₽ reaches the account.

By the tenth year the dividend has grown to 45,04 ₽ per share and the year brings 47 024,11 ₽ net. Over the whole horizon 406 203,56 ₽ is declared, 52 806,46 ₽ is withheld and 353 397,10 ₽ is received: that is 103,1% of the money invested, so the package pays for itself in the tenth year — and the position itself stays yours.

Bonds: par 1 000 ₽, price 92,40% of par (924,00 ₽), an 8,5% coupon in two payments of 42,50 ₽, redemption on 15.03.2030, accrued interest 21,66 ₽, 100 bonds. The current yield is 9,20% (85,00 ₽ of coupon against a price of 924,00 ₽), and the yield to maturity is higher: the coupons are joined by a 76 ₽ discount per bond that comes back at redemption. Invested including accrued interest — 94 566,00 ₽, coupons over the term — 34 000,00 ₽, redemption — 100 000,00 ₽.

Frequently asked questions

How does dividend yield differ from yield to maturity?

A dividend is a decision of the board, not an obligation: its size changes every year and can become zero. A bond coupon is fixed in the prospectus and par comes back on a known date — so a yield to maturity can be computed in advance and exactly, while a dividend yield can only be estimated from the last payments and your own assumption about growth.

Why is the yield to maturity above the coupon rate?

Because the bond was bought below par: at 92,40% of par, say, and it will be redeemed at 100%. Those 76 ₽ of difference are income just like a coupon, only paid once at the end. If the price is above par it works the other way round and the yield to maturity falls below the coupon rate — an ordinary scenario for a high-coupon bond, not an input error.

What is accrued interest, and why does the buyer pay it?

It is the part of the coupon the bond has "earned" since the last payment. The seller held it for those days and takes their share from you, while the whole coupon reaches you on the next payment date. So it is not a loss: it is part of the money invested and comes back with the first payment. Leave the field empty and the calculation runs on the clean price — on many issues the accrued interest really is zero on a coupon date.

How is the tax on dividends and coupons withheld?

A withholding agent — the issuer or the broker — takes it out of every payment, so the amount reaching the account is already net. You choose the rate on the page: 13% and 15% are the steps of the "other income" scale, and which one is yours depends on all your income in that base for the year rather than on the paper on screen alone. There is no tax-free allowance here, unlike deposit interest: the tax starts at the first rouble. The progressive scale on employment income is the "Taxes and deductions" calculator, and the reliefs on selling securities are "Tax on selling securities".

What happens to the calculation if the company cancels the payout?

The calculation is a scenario built on your assumptions, not a promise. A cancelled payout shows up as a zero dividend or as negative growth: enter a growth rate with a minus sign and the columns start shrinking while the payback slides past the horizon. This is exactly why a dividend yield cannot be compared with a coupon yield directly: one figure has a prospectus behind it, the other only a payment history.

Reinvest the payments or spend them?

This calculator counts a flow: money leaves the issuer and arrives with you. Reinvestment is a different question and different arithmetic (income starts earning income) — the "DCA calculator" and "Deposit with capitalisation" are for that. Mixing them into one table would show a payback earlier than it actually arrives.

Is the dividend gap taken into account?

No, and deliberately so: the gap is a price movement, while this page counts a cash flow and a yield against the entry price. The dividend gap matters if you plan to sell shortly after the record date; over the horizon on which payments pay the package back it changes nothing — the position stays yours.

Where do the issuer chips get their figures, and how fresh are they?

From a dated reference book refreshed by the backend; without a connection a compiled-in copy is used. A chip only fills the fields — every value can then be edited by hand, and the preset is not lost when you do. If the declared dividend is more than two years old, the chip says so in its tooltip; check the figures against your broker before trading.