Dividend yield
Yield = Annual dividend ÷ Share price × 100A stock paying $0.45 a quarter ($1.80 a year) at a $50 share price yields 1.80 ÷ 50 = 3.6%.
DRIP growth, dividend yield and income goals
Dividend Calculator
This dividend calculator projects how your dividend income and portfolio grow with reinvestment, dividend growth and regular contributions. Switch tabs to work out dividend yield, or find out how much you need to invest to reach a monthly income goal.
Dividend reinvestment calculator
Growth over time
| Year | Invested | Dividends (net) | Monthly income | Gross dividends | Value |
|---|
Formulas
How Dividend Calculations Work
A handful of simple formulas explain how dividend income is worked out and why reinvesting it grows so powerfully over time.
Annual dividend income
Income = Shares × Annual dividend per shareOwning 200 shares that pay $1.80 a year gives $360 of dividend income before tax.
Dividend reinvestment (DRIP)
New shares = Dividend ÷ Share priceEach payout buys more shares, which pay their own dividends next time. Over decades this compounding often supplies a large share of total income.
Investment needed for an income goal
Investment = Annual income ÷ YieldTo earn $1,000 a month ($12,000 a year) at a 4% yield, you need $12,000 ÷ 0.04 = $300,000 invested.
Yield on cost compares today’s dividend with what you originally paid. As dividends grow, yield on cost can climb well above the yield you bought at. Compare growth strategies with the compound interest calculator.
Reference
Dividend Income and Goal Tables
Quick answers for common portfolio sizes and income goals. Figures are before tax and assume a steady yield.
| Invested | 2% | 3% | 4% | 5% | 6% |
|---|---|---|---|---|---|
| $10,000 | $200 | $300 | $400 | $500 | $600 |
| $25,000 | $500 | $750 | $1,000 | $1,250 | $1,500 |
| $50,000 | $1,000 | $1,500 | $2,000 | $2,500 | $3,000 |
| $100,000 | $2,000 | $3,000 | $4,000 | $5,000 | $6,000 |
| $250,000 | $5,000 | $7,500 | $10,000 | $12,500 | $15,000 |
| $500,000 | $10,000 | $15,000 | $20,000 | $25,000 | $30,000 |
| $1,000,000 | $20,000 | $30,000 | $40,000 | $50,000 | $60,000 |
| Monthly income | 3% yield | 4% yield | 5% yield | 6% yield |
|---|---|---|---|---|
| $500 | $200,000 | $150,000 | $120,000 | $100,000 |
| $1,000 | $400,000 | $300,000 | $240,000 | $200,000 |
| $2,000 | $800,000 | $600,000 | $480,000 | $400,000 |
| $3,000 | $1,200,000 | $900,000 | $720,000 | $600,000 |
| $5,000 | $2,000,000 | $1,500,000 | $1,200,000 | $1,000,000 |
Why ours
Why This Dividend Calculator Is Better
Many dividend calculators ignore taxes, contributions or the timing of payouts. This one models them all.
True DRIP compounding
Dividends are reinvested on each payout date at the growing share price, quarterly, monthly or yearly.
Dividend and price growth
Model rising dividends and share prices separately, the way real dividend growth stocks behave.
Monthly contributions
Add a monthly investment and see how steady saving and reinvestment work together.
After-tax income
Apply your dividend tax rate so projections show the income you actually keep and reinvest.
Chart and table
See portfolio value, money invested and yearly dividend income on one chart with a full year-by-year table.
Three tools in one
Switch between income growth, dividend yield and income goal calculators without leaving the page.
Guide
How to Use the Dividend Calculator
Results update as you type.
- Pick a calculator
Income growth projects the future, Dividend yield analyses a single stock, and Income goal tells you how much to invest.
- Enter your starting point
Add your starting investment and how much you will add each month.
- Set yield and growth
Enter the current dividend yield, how fast the dividend grows and how fast the share price grows each year.
- Choose payouts, tax and DRIP
Select how often dividends are paid, your tax rate and whether you reinvest.
- Review and share
Check the chart and table, then copy or share your projection.
Benefits
Benefits of Planning Dividend Income
Dividend investing rewards patience. Seeing the numbers helps you stay the course.
Plan passive income
Find out when your dividends could cover a bill, a mortgage payment or your living costs in retirement.
See the power of reinvesting
Compare DRIP on and off to see how much reinvesting adds to your income and wealth over the years.
Compare stocks fairly
Use the yield tab to compare dividend stocks at different prices and payout schedules on equal terms.
Set realistic goals
Work out the portfolio size you need, then plan contributions with the SIP calculator and retirement calculator.
FAQ
Dividend Calculator FAQ
How do you calculate dividend yield?
Divide the annual dividend per share by the share price and multiply by 100. A stock that pays $2 a year and trades at $50 has a dividend yield of 2 ÷ 50 × 100 = 4%. If dividends are paid quarterly, multiply one payment by four to get the annual figure.
How much do I need to invest to make $1,000 a month in dividends?
You need $12,000 a year of dividends. Divide that by your portfolio’s yield: about $400,000 at a 3% yield, $300,000 at 4% or $240,000 at 5%, before tax. Use the income goal tab to include your tax rate.
What is a DRIP?
A DRIP, or dividend reinvestment plan, automatically uses each dividend payment to buy more shares instead of paying cash. Those new shares earn their own dividends, so income and holdings compound over time.
What is a good dividend yield?
Many established dividend-paying companies yield roughly 2% to 5%. Very high yields, especially above 8% to 10%, can be a warning sign that the share price has fallen because investors expect a dividend cut. A sustainable, growing dividend usually matters more than a high starting yield.
What is dividend growth rate?
The dividend growth rate is how much a company increases its dividend per share each year, as a percentage. A company that raises its annual dividend from $2.00 to $2.12 has grown it by 6%. Steady growth raises your income even without buying more shares.
What is yield on cost?
Yield on cost is the current annual dividend divided by the price you originally paid. If you bought a share at $50 and it now pays $4 a year, your yield on cost is 8%, even if the current yield for new buyers is lower.
How often are dividends paid?
Most US companies pay dividends quarterly, some funds and real estate trusts pay monthly, and many UK, European and Indian companies pay once or twice a year. The payout frequency changes how quickly reinvested dividends compound.
Are dividends taxed?
It depends on where you live and the account. In the US, qualified dividends are taxed at 0%, 15% or 20% at the federal level and ordinary dividends at income tax rates. In India, dividends are taxed at your income tax slab rate. Dividends inside tax-advantaged retirement accounts may be tax-free or tax-deferred.
Is it better to reinvest dividends or take the cash?
Reinvesting dividends usually builds more wealth and future income because of compounding, which suits investors still saving. Taking the cash suits retirees who need the income to live on. In taxable accounts, tax is generally due on dividends whether or not you reinvest them.
Build Income That Grows Every Year
Use the dividend calculator to plan your passive income, then check returns, taxes and inflation with our other investment tools.
Project my dividendsProjections are hypothetical and not investment advice. Dividends can be cut and share prices can fall.