Dividend Calculator
Project the dividend income from a stock portfolio and how it grows with dividend reinvestment — enter your investment, share price, dividend yield, years and DRIP choice.
What is a dividend calculator?
A dividend calculator estimates the income a stock portfolio generates and how that income grows over time. A dividend is a share of a company's profits paid out to shareholders, and dividend yield is the annual dividend as a percentage of the share price — for example, a 4% yield pays $4 a year for every $100 invested. This free calculator takes four inputs: your total investment, the share price, the dividend yield and a number of years. It also lets you choose dividend reinvestment (DRIP), where the dividends you earn are used to buy more shares, so your position compounds year after year.
With reinvestment on, the portfolio value grows at roughly the dividend yield, and both the value and the annual income rise over the term. With reinvestment off, the annual income stays flat while the portfolio value remains the investment amount. The tool keeps the yield constant for a simple long-run projection and is currency-agnostic — the display uses $ for the example, but the math works for any currency. Everything runs in your browser, so nothing is uploaded anywhere.
How to use
- Enter the total amount invested in dividend-paying stocks.
- Set the share price and the dividend yield as a percentage.
- Enter the number of years and turn DRIP on or off.
- Click Calculate dividends to see income and portfolio growth.
How dividend growth is calculated
Shares = Investment ÷ share price Annual income = Investment × dividend yield With DRIP, value = Investment × (1 + yield)^t
Dividend reinvestment compounds your holdings: reinvested dividends buy more shares, which in turn pay dividends, so the portfolio and its income grow together.
Example
With the defaults — $10,000 invested, a $100 share price, 4% yield and 10 years with DRIP on — click Calculate dividends. You own 100 shares, earn $400 a year to start, and after 10 years of reinvestment your portfolio grows to $14,802.44 while your annual income rises to $592.10. Turn DRIP off and the portfolio stays at $10,000 with a flat $400 annual income.
Common use cases
- Build passive income: estimate the cash your dividend portfolio pays each year.
- Compare DRIP vs no DRIP: see how reinvestment compounds value and income over time.
- Plan retirement income: project dividend cash flow as a source of retirement income.
- Analyze different stocks: compare yields and how each grows under reinvestment.
Pro tips
- Reinvest by default: DRIP dramatically compounds both your holdings and your income over the long run.
- Look beyond the yield: total return includes share price growth, and a high yield can signal risk.
- Check sustainability: a reliable yield is usually backed by steady earnings and a healthy payout ratio.
- Factor in taxes: dividends are taxable in many countries, so your real after-tax income will be lower.
FAQ
What is a dividend?
A dividend is a share of a company's profits paid out to its shareholders, usually in cash, on a regular schedule.
What is dividend yield?
Dividend yield is the annual dividend per share divided by the share price, expressed as a percentage. A 4% yield pays $4 a year for every $100 invested.
What does DRIP (Dividend Reinvestment Plan) mean?
A DRIP automatically uses the dividends you receive to buy more shares, so your portfolio compounds over time.
How is annual dividend income calculated?
Multiply your investment by the dividend yield. For $10,000 at a 4% yield, you earn $400 of dividends a year before reinvestment.
Does dividend yield change over time?
Yes. Yield moves with the share price and dividend policy. A constant yield here is a simplification for a long-run estimate.
Are dividends taxed?
In many countries dividends are taxable income, often at a lower rate than wages, so factor in your local tax treatment.
What is a good dividend yield?
There is no universal number, but many income investors look for a sustainable 2% to 5% range, balancing yield with reliability.
Do dividends grow with the stock price?
Not automatically. A company can raise or cut its dividend independently of its share price, though earnings growth usually supports dividend growth.
Is dividend investing risky?
Yes. Dividend-paying stocks still fluctuate in price and can cut their payouts, so dividends are not guaranteed like a bond interest payment.
Is this dividend calculator free and private?
Yes. It runs entirely in your browser and nothing is uploaded to any server.
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