Home / Investing Tools / Dividend Calculator
Dividend Calculator
Project dividend income and portfolio value with dividend reinvestment (DRIP), dividend growth and monthly contributions.
How dividend reinvestment grows income
When you reinvest dividends, each payment buys more shares, which pay more dividends next time. Combined with companies raising their dividends over time, this can grow your income much faster than your contributions alone.
Yield on cost
Yield on cost compares your annual dividend income with the total amount you invested. A rising yield on cost is a sign that dividend growth and reinvestment are working for you.
How to use this dividend calculator
Enter your initial investment, how much you'll add each month, the portfolio's dividend yield, how fast you expect the dividend and the share price to grow each year, and the number of years. Turn on dividend reinvestment (DRIP) to see how reinvesting compounds your income, or turn it off to see the cash you'd collect instead. The results show your final portfolio value, your annual and monthly dividend income in the final year, your yield on cost and a year-by-year table.
Choosing realistic inputs
Dividend yield: broad US stock indexes have typically yielded around 1% to 2% in recent years, while dividend-focused funds and stocks often yield 3% to 4% or more. Dividend growth: many established dividend payers have raised payouts by mid-single digits a year, but growth is never guaranteed and dividends can be cut. Run a conservative case with lower yield and growth alongside your base case to see a realistic range.
Yield on cost is your annual dividend divided by what you originally invested. With steady dividend growth and reinvestment, it can rise well above the starting yield over a decade or two, which is the main idea behind dividend growth investing.
Related guides
Dividend investing for beginners · How dividends are paid (ex-dividend dates) · Dividend payout ratio · What is a REIT? · Dividend stock screener
Frequently asked questions
What is a good dividend yield?
Broad US stock indexes have yielded roughly 1% to 2% in recent years, while many established dividend payers yield 2% to 4%. Very high yields can signal that the market expects a dividend cut.
Are dividends taxed?
In taxable US accounts, qualified dividends are generally taxed at long-term capital gains rates. Dividends in IRAs and 401(k)s are not taxed until withdrawal (or at all, for Roth accounts). This calculator does not deduct taxes.
More tools: all investing calculators · stock screener · portfolio tracker