The dividend yield expresses the annual dividend per share as a percentage return on investment at the prevailing market price. Equity dividend yields may be calculated both net and gross of the 10% dividend tax credit.
Companies pay you dividends out of profits on which they have already paid - or are due to pay - tax. The dividend tax credittakes account of this and is available to the shareholder to offset against any Income Tax that may be due on their dividends.
On Stockopedia, all the dividends are shown before any grossing up for the tax credit. This is to be contrasted with, say, Company Refs which shows yields on a gross basis.
To take an example, a 10p dividend on a 100p share would be stated as a net yield of 10% rather than a gross dividend yield of 11.11% (£1.11 less 10% = £1.00)
While this is in line with the way most people and organisations use dividends yields, it is important to remember this when making a comparison between, say, the interest rates available on a bank account and the dividend yield quoted on equities, so that that the comparison is done on a like for like basis.