Dividend Calculator
Work out dividend yield and income from a share price and payout, then project shares, value and yearly income with DRIP, dividend growth and contributions.
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About this toolWhat is the Dividend Calculator?
The Dividend Calculator does two jobs. First, it gives you the basic numbers for a dividend stock or fund: yield (annual dividend divided by share price), the income your investment pays each year, and how much arrives with each monthly, quarterly, semi-annual or annual payment. You can enter either the dividend per share or a yield percentage.
Second, it projects the investment forward. Choose how many years, how fast the dividend grows, how fast the share price grows, whether dividends are reinvested through a DRIP, how much you add each month and how much tax comes off each payment. The year-by-year table shows shares owned, price, dividends received and value, and the summary gives final value, income in the last year and yield on cost.
An income-goal box answers the reverse question: how much would I need invested at this yield to receive a given yearly income? All calculations run in your browser.
- Yield from dividend per share, or dividend from yield
- Monthly, quarterly, semi-annual or annual payments
- DRIP simulation payment by payment with fractional shares
- Dividend growth, price growth, monthly contributions and dividend tax
- Year-by-year table, yield on cost and an income-goal solver
- Currency selector, copy and share link, runs in your browser
How to use the Dividend Calculator
- Enter the share price and either the annual dividend per share or the dividend yield.
- Choose how often the dividend is paid: monthly, quarterly, semi-annual or annual.
- Set expected dividend growth, share price growth and any tax taken from dividends.
- Enter your initial investment, what you add each month and the number of years, and tick DRIP to reinvest dividends.
- Read yield, current income and per-payment income, then the projection summary and year-by-year table. Use the income goal box to see how much you would need invested for a target income.
Worked examples
Yield and income on $10,000
Input
Price $50, dividend $2 a year, paid quarterly, $10,000 invested
Output
Yield 4.00%; 200 shares; $400 a year, $100 each quarter
$2 / $50 = 4%. 200 shares x $2 = $400 a year, split into four payments of $100.
DRIP against taking cash, 10 years, no growth
Input
Price $100, dividend $4 quarterly, $10,000, 10 years, flat price and dividend
Output
DRIP: 148.89 shares worth $14,888.64 paying $595.55 a year. Cash: 100 shares, $14,000 including $4,000 of dividends, paying $400 a year
Reinvesting turns the $4,000 of dividends into 48.89 extra shares, and those shares pay dividends too. Income ends almost 50% higher.
Twenty years of growth and saving
Input
Price $50, dividend $2 quarterly, $10,000 plus $100 a month, dividend growth 5%, price growth 4%, DRIP, 20 years
Output
About 1,035 shares worth $113,410.75; $34,000 invested; income in the final year $5,493.30; yield on cost 16.16%
Contributions, reinvested dividends and a growing payout compound together. The yield on cost is high because income grew faster than the money put in.
Investment needed for $1,000 a month
Input
Income goal $12,000 a year at a 4% yield
Output
$300,000 invested
$12,000 / 0.04. At a 3% yield the same income needs $400,000, before any tax.
Background and insight
Dividend yield is the annual dividend per share divided by the current share price. A $50 stock paying $2 a year yields 4%. Because the price moves every day and the dividend changes only when the board declares a new rate, yield moves inversely with price; a sudden high yield often signals a falling price and a dividend at risk rather than a bargain. Companies pay on a schedule announced in advance, and to receive a payment you must own the shares before the ex-dividend date, as the SEC's Investor.gov explains.
A dividend reinvestment plan (DRIP) uses each payment to buy more shares, usually including fractional shares. Reinvesting compounds the share count: with a flat price and a 4% yield paid once a year, shares grow by exactly 4% a year, so 100 shares become 148.02 after ten years. Paid quarterly, the growth is (1 + 1%) per quarter, slightly faster. The calculator simulates every payment: it adds any monthly contribution at the start of the period, pays shares x dividend / payments per year, takes off tax, moves the price along its growth path and, with DRIP on, buys shares at that price.
Dividend growth is often the bigger lever over long periods. A dividend that rises 5% a year doubles in about 14 years, so yield on cost (current income divided by what you invested) can climb well above the starting yield. Taxes matter too: in a US taxable account, qualified dividends are taxed at 0%, 15% or 20% depending on income, while ordinary dividends are taxed as wages; in an IRA or 401(k) there is no tax on dividends as they are paid. Enter the rate that applies to you, or 0 for a retirement account.
Common use cases
Comparing dividend stocks and funds
Check yield and income per payment for several holdings on the same basis.
Deciding whether to turn on DRIP
Compare shares, value and income with reinvestment on and off over your time horizon.
Planning retirement income
Estimate the portfolio size needed for a target dividend income and how long contributions take to get there.
Understanding yield on cost
See how a growing dividend raises income on your original investment year after year.
Tips and limitations
- Dividends are not guaranteed. Companies cut or suspend them in hard times, and a very high yield is often a warning sign.
- Use the forward dividend (the latest declared rate x payments per year) rather than last year's total if the company has just raised or cut it.
- Price growth and dividend growth are assumptions. Try a pessimistic case with 0% price growth to see how much of the result depends on it.
- Some brokers and company DRIPs do not buy fractional shares; leftover cash then waits for the next payment.
- Qualified dividend status needs a minimum holding period around the ex-dividend date; shares bought and sold quickly may have ordinary dividends.
- Fund expense ratios are not modelled. A fund's stated yield is already after its expenses, but the price growth you enter should be too.
Frequently asked questions
How do you calculate dividend yield?
Divide the annual dividend per share by the current share price and multiply by 100. A stock at $50 paying $0.50 a quarter ($2 a year) yields 4%. If the price falls to $40 with the same dividend, the yield rises to 5%.
How much dividend income will my investment make?
Multiply the number of shares by the annual dividend per share, or the amount invested by the yield. $10,000 at a 4% yield pays $400 a year, or $100 a quarter for a quarterly payer.
What does DRIP mean and does it make a difference?
A dividend reinvestment plan uses each payment to buy more shares. Over ten years at a 4% yield with no price change, reinvesting turns 100 shares into about 149, so income is about 49% higher than taking cash.
How much do I need to invest to get $1,000 a month in dividends?
Divide $12,000 a year by the yield. At 4% you need $300,000; at 3% you need $400,000; at 5%, $240,000. Taxes in a taxable account reduce the income you keep.
What is yield on cost?
It is the current yearly dividend income divided by the total amount you invested. If dividends grow, yield on cost rises over time even though the yield on today's price may stay the same.
Are dividends taxed?
In a US taxable account, qualified dividends are taxed at 0%, 15% or 20% depending on taxable income, and other dividends at ordinary rates. In an IRA or 401(k) dividends are not taxed as they are paid. Enter your rate in the tax field to see the effect.
Does the calculator include share price changes?
Yes. The price grows at the yearly rate you enter, spread evenly over each payment period, and DRIP purchases happen at the price on each payment date. Set price growth to 0 to isolate the effect of dividends.
Is there an in-depth guide to the Dividend Calculator?
Yes. “Dividend Yield, Income and DRIP Compounding Explained” covers the background, how it works, common pitfalls and worked examples. Read the full guide.
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