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Dividend Calculator
Enter an investment, its dividend yield and how fast you expect dividends and the share price to grow. You get the income now, the income later and the value of reinvesting.
Example
$20,000 at a 3.5% yield pays $700 in the first year. Reinvesting for 20 years grows the portfolio to $90,474 with $3,510.25 of yearly income. Spending the dividends leaves $43,822.
How the dividend calculator works
Dividend income is the amount invested multiplied by the yield: income = investment × dividend yield.
Each year the calculator pays the dividend, then applies share price growth and dividend growth. With reinvestment, each dividend buys more shares, and those shares pay their own dividends the following year.
Dividends and prices are assumed to grow at steady rates. In practice companies cut dividends and prices fall in some years, so treat the result as an illustration.
Common questions
What is a good dividend yield?
Broad share indexes have typically yielded around 1.5% to 4%, depending on the market. A very high yield can be a warning that investors expect the dividend to be cut.
Are dividends taxed?
In most countries, yes, although the rate depends on the account type and your income. Tax reduces the amount available to reinvest and is not included here.
Is a dividend stock better than a growth stock?
What matters is total return, which is dividends plus price growth. A dividend is paid out of the company’s value, so it is not extra money on top of the share price.