FTSE 100 Dividend Yield Calculator

A dividend yield is the annual dividend income a share or fund pays, expressed as a percentage of its current price. For the FTSE 100 index as a whole, it is usually quoted as the aggregate or average yield across the 100 constituent companies, weighted by their size in the index.

As of 21 May 2026 the FTSE 100's overall forward dividend yield stood at approximately 3.03%, according to IG UK, a compression from recent years driven by a strong index. This calculator uses that figure as its default current basis, and you can overwrite it at any time.

FTSE 100 dividend yields have generally ranged between roughly 2.0% and 4.0% since 2000, according to CMC Markets, though the exact figure varies with the measurement period and prevailing share prices. This calculator's long-run average basis (3.5%) sits near the middle of that range.

Annual income is your amount invested multiplied by the dividend yield you enter or accept. For example, £10,000 invested at a 3.03% yield gives an estimated £303 in the first year. Monthly and per-payment figures simply divide that annual amount by 12, or by your chosen payment frequency.

Most FTSE 100 companies pay dividends quarterly, though some pay semi-annually or annually. Changing the frequency only changes how the same annual income is split into per-payment amounts, it does not change your total annual income.

DRIP stands for Dividend Reinvestment Plan. Switching it on assumes every dividend payment is used to buy more units or shares at the same yield, so future dividends are paid on a larger pot. This can meaningfully increase both your total dividends received and your final portfolio value over longer time horizons, compared with taking the dividends as cash.

Yield on cost compares your current dividend income to your original investment amount, rather than to the pot's current value. If dividends grow over time, or you reinvest them so your holding grows, your yield on cost can rise well above the yield you originally invested at.

Even without reinvestment, many companies aim to grow their dividend payout year on year, roughly in line with earnings or inflation. The growth rate models that rising payout on your original investment amount, separate from whether you choose to reinvest the cash or spend it.

No. This calculator only models the dividend payout growing over time, it does not attempt to model or predict FTSE 100 share price movements. For an estimate of overall investment growth including share price, see the FTSE 100 Historical Returns Calculator instead.

Yields above roughly 6% can signal either an especially generous dividend payer or a falling share price, since yield rises as price falls for the same dividend amount, according to openbookanalytics.com. Very high yields are sometimes a warning sign that a dividend cut is more likely.

Yes. Enter the amount you have invested (or plan to invest) and that share's dividend yield instead of the FTSE 100 average. The same income, frequency, reinvestment and growth calculations apply.

No. It does not connect to a live market data feed for a specific company or fund. You provide the yield, or accept one of the default FTSE 100 market figures, and the tool calculates the resulting income and projections from that input.

No. Figures are shown before tax. Dividends held inside a Stocks and Shares ISA or a pension are generally free of UK dividend tax; a general investment account may be subject to dividend tax depending on your total dividend income and personal allowances.

No. Dividends can be cut, suspended, or increased at any time at a company's discretion, and past dividend payments are not a reliable predictor of future ones. Treat every figure on this page as an estimate, not a guarantee.

No. This calculator provides an illustrative estimate only, based on assumptions you control. It is not financial, investment, or tax advice. Speak to a regulated financial adviser or use MoneyHelper's free guidance before making investment decisions.