Calculate how your dividend investments grow over time with our easy-to-use tool. Plan your passive income strategy!
| Year | Principal | Contributions | Annual Dividends | Dividends After Tax | Capital Growth | Total Value | Yield on Cost |
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Our free dividend calculator helps you estimate the growth of your dividend investments over time, allowing you to see the power of dividend reinvestment and compound interest. Whether you're investing in individual stocks or building a dividend portfolio, this dividend yield calculator provides accurate projections to help you plan your investment strategy.
To calculate your potential dividend income and investment growth, follow these steps:
This dividend calculator uses a comprehensive formula that accounts for multiple factors including your initial investment, regular contributions, dividend yield, growth rates, tax implications, and the powerful effect of compound growth through dividend reinvestment.
Dividend yield represents the annual dividend payment as a percentage of the current share price. For example, if a $100 stock pays $3 in annual dividends, the dividend yield is 3%. This calculator uses your input yield as a starting point and compounds it based on your specified growth rate. Learn more about dividend yields on Investopedia.
Many established dividend-paying companies increase their dividend payments annually. This rate of increase is the dividend growth rate. Historical dividend aristocrats have average growth rates of 5-10% annually, though this varies widely by company and industry. See Yahoo Finance's guide to dividend growth investing for more information.
Yield on cost shows the current annual dividend as a percentage of your original investment. As dividends grow over time, your yield on cost increases. This important metric demonstrates the long-term benefit of dividend growth investing. Read more about yield on cost to understand its importance for long-term investors.
Reinvesting dividends allows you to purchase additional shares with your dividend payments, accelerating portfolio growth through compounding. Our calculator shows the dramatic difference DRIP can make to your long-term results compared to taking dividends as cash. Learn about dividend reinvestment plans on Investopedia.
The portfolio calculation treats your entire investment as a single entity with an average dividend yield and growth rate. This is ideal for modeling a diversified dividend portfolio or index fund without tracking individual holdings.
The individual stock mode allows you to model a specific stock investment by entering share count and price. This provides more detailed projections including share accumulation through dividend reinvestment, which is useful for analyzing specific dividend stocks.
A dividend yield calculator is a tool that helps investors estimate the income and growth potential of dividend-paying investments. Our free dividend calculator shows you not only the current yield but projects future growth based on reinvestment, additional contributions, and expected dividend increases.
Dividend yield is calculated by dividing the annual dividend payment by the current stock price, then multiplying by 100 to get a percentage. For example, if a stock pays $2 in annual dividends and is currently priced at $50, the dividend yield is ($2 ÷ $50) × 100 = 4%.
A "good" dividend yield depends on your investment goals, risk tolerance, and market conditions. Generally, yields between 2-6% are considered reasonable. Very high yields (above 8-10%) might indicate risk, as they could be unsustainable or reflect a declining share price. The average S&P 500 dividend yield historically ranges from 1.5-4.5%.
Dividend reinvestment dramatically increases returns over time through compounding. By using dividends to purchase additional shares, you earn dividends on those new shares in future periods, creating a snowball effect. Our calculator shows that over decades, the difference between reinvesting and not reinvesting can be substantial—often doubling or tripling total returns.