Dividend Calculator
Work out a stock or fund’s dividend yield and income, then project how reinvesting (DRIP) and dividend growth snowball your payouts over time.
$63 a month, $188 a quarter; each quarterly payment ≈ $188 at a 3.00% yield, before tax.
Year-by-year dividend schedule
| Year | Share price | Dividend / share | Dividends (after tax) | Cumulative dividends | Yield on cost | Shares | Value |
|---|---|---|---|---|---|---|---|
| 1 | $83.20 | $2.40 | $678 | $678 | 2.79% | 365.2 | $30,384 |
| 2 | $86.53 | $2.52 | $824 | $1,502 | 3.01% | 417.6 | $36,134 |
| 3 | $89.99 | $2.65 | $983 | $2,486 | 3.23% | 469.8 | $42,276 |
| 4 | $93.59 | $2.78 | $1,156 | $3,641 | 3.45% | 521.9 | $48,841 |
| 5 | $97.33 | $2.92 | $1,343 | $4,984 | 3.67% | 573.9 | $55,859 |
| 6 | $101.23 | $3.06 | $1,545 | $6,529 | 3.90% | 626.0 | $63,366 |
| 7 | $105.27 | $3.22 | $1,765 | $8,294 | 4.14% | 678.2 | $71,399 |
| 8 | $109.49 | $3.38 | $2,003 | $10,298 | 4.38% | 730.7 | $79,997 |
| 9 | $113.86 | $3.55 | $2,262 | $12,560 | 4.64% | 783.4 | $89,205 |
| 10 | $118.42 | $3.72 | $2,543 | $15,102 | 4.90% | 836.6 | $99,068 |
| 11 | $123.16 | $3.91 | $2,847 | $17,949 | 5.18% | 890.2 | $109,637 |
| 12 | $128.08 | $4.10 | $3,177 | $21,126 | 5.48% | 944.5 | $120,968 |
| 13 | $133.21 | $4.31 | $3,536 | $24,662 | 5.79% | 999.3 | $133,119 |
| 14 | $138.53 | $4.53 | $3,925 | $28,587 | 6.12% | 1055.0 | $146,155 |
| 15 | $144.08 | $4.75 | $4,347 | $32,934 | 6.47% | 1111.5 | $160,145 |
| 16 | $149.84 | $4.99 | $4,806 | $37,739 | 6.84% | 1169.0 | $175,165 |
| 17 | $155.83 | $5.24 | $5,304 | $43,043 | 7.24% | 1227.6 | $191,296 |
| 18 | $162.07 | $5.50 | $5,845 | $48,888 | 7.66% | 1287.3 | $208,627 |
| 19 | $168.55 | $5.78 | $6,433 | $55,320 | 8.10% | 1348.3 | $227,253 |
| 20 | $175.29 | $6.06 | $7,071 | $62,392 | 8.58% | 1410.7 | $247,279 |
At a 3.00% yield and 15% tax you’d need about $470,588 invested.
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The DRIP snowball, share by share
Start with 100 shares at $50 paying $2 a year (4%). The dividend grows 5% a year and the price 4%. With reinvestment, every payout buys shares that pay their own dividends. Without it, you keep 100 shares forever.
300 shares · $1,844/yr
Dividend formulas
- Dividend yield = annual dividend per share ÷ price per share.
- Annual income = shares owned × annual dividend per share (= amount invested × yield).
- Yield on cost = today’s annual dividend ÷ what you originally paid. It rises over time if the company grows its dividend.
- Investment needed = desired yearly income ÷ yield.
The projection pays dividends at the frequency you choose; your monthly additions are invested at each payout date at the prevailing price. Real dividends and prices move unevenly; treat the growth rates as long-run averages. Historically, the S&P 500’s dividend has grown around 5–6% a year on average over long periods, with cuts in recessions.
For total-return projections that don’t split out dividends, the investment calculator is simpler. To judge a past holding’s performance including dividends, use the ROI calculator.
Questions people ask
How do I calculate dividend yield?
Dividend yield = annual dividend per share ÷ share price × 100. A stock paying $0.60 a quarter ($2.40 a year) at $80 yields 3%. Use the forward (next 12 months) dividend where you can; trailing yield can mislead after a cut.
What is a DRIP?
A dividend reinvestment plan automatically uses each dividend to buy more shares (often fractional, commission-free). Those new shares pay dividends too, so income compounds. Reinvested dividends are still taxable in a regular brokerage account.
How much do I need to invest to make $1,000 a month in dividends?
Divide the yearly income you want by the yield. $12,000 a year at a 4% yield needs $300,000; at 3% it needs $400,000. Chasing a very high yield to shrink that number increases the risk of dividend cuts.
Are dividends guaranteed?
No. Companies can cut or suspend dividends at any time; many did in 2008–09 and 2020. Diversified dividend funds spread that risk.
Does it matter if a stock pays monthly or quarterly?
The yearly income is the same for the same yield. With reinvestment, monthly payouts compound slightly sooner, but the difference is small: usually well under 0.1% a year. Use the “Paid” option to see it for your numbers.
What is yield on cost?
Yield on cost divides the dividends you receive in a year by the total you have invested. If a company keeps raising its dividend, your yield on cost climbs over the years even though the current yield for new buyers may stay flat.
What is a good dividend yield?
Broad US stock indexes have yielded roughly 1–2% in recent years, and established dividend payers often yield 2–5%. Yields far above that can signal that the market expects a cut, so check the payout ratio (dividends ÷ earnings) and dividend history before chasing yield.
How are dividends taxed?
In a taxable US account, qualified dividends are taxed at 0%, 15% or 20% depending on income, and non-qualified (ordinary) dividends at your income tax rate. In an IRA or 401(k) they are sheltered. The tax field lets you see the after-tax result.