Guide to Dividends and Income Investing

A clear, practical guide for new and experienced UK investors. Explore how dividends work, how they are taxed, how to reinvest them, and how to avoid common high-yield traps.

What Are Dividends?

Learn what dividends are, why companies pay them, how UK investors receive them, and how dividend yield works. Includes examples and a yield calculator.

Learn how to construct a diversified UK income portfolio using dividend shares, REITs, bonds, and investment trusts. Includes example allocations and an interactive risk-profiling tool to help match strategy to your goals.

What Happens on the Ex-Dividend Date?

Understand how the ex-dividend date determines eligibility, why share prices fall, and how ex-dividend adjustments work for spread bets and CFDs.

Yield vs Payout Ratio

Learn why yield alone is not enough. Understand payout ratios, dividend safety, sector considerations, and how to evaluate sustainable income. Includes an interactive dividend sustainability checker.

Dividend Taxation (UK)

A complete guide to UK dividend tax: allowances, tax rates, foreign withholding tax, and why ISAs and SIPPs eliminate dividend tax entirely.

Reinvesting Dividends (DRIP & Scrip)

Discover the power of compounding. Understand DRIPs, scrip dividends, broker auto-reinvestment, and see how reinvestment accelerates growth with an interactive calculator.

Dividend Aristocrats & Long-Term Payers

Understand what Dividend Aristocrats and long-term dividend payers are, how UK companies differ from US Aristocrats, and how to assess consistency. Includes an interactive dividend stability checker.

DRIP vs Scrip Dividends

A clear comparison between DRIPs and scrip dividends, including costs, tax treatment, fractional shares, dilution, and when each option is better. Includes an interactive recommendation helper.

High-Yield Dividend Risks

Why high yields can signal danger. Learn about payout ratios, dividend traps, debt problems, sector risks, and how to identify unsustainable dividends.

Dividends & CFDs / Spread Betting

Understand how dividends are handled in CFD and spread betting accounts: long/short adjustments, index CFD dividend effects, special dividends, timing, and tax treatment.

This guide is written for UK investors and covers the most important concepts needed to build a thoughtful, income-focused investment strategy.