Dividend Calculator

Estimate the dividend income from a stock holding, now and over the years. The dividend calculator handles dividend growth, price growth, and reinvesting through a DRIP.

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Yearly dividend income
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Estimate only. Not financial advice.

How to use the Dividend Calculator

  1. Enter your Holding in shares or dollars, the Share price, and the Dividend as a yield or an amount per share.
  2. Choose how often it is Paid, the number of Years, the expected growth rates, and whether to reinvest dividends.
  3. Press Calculate. This year's income comes first, then the total over the period, the shares you end with, and their value.

How it works

dividend per share = price × yield
yearly income = shares × dividend per share
each payment = shares × dividend per share ÷ payments per year
with DRIP: shares += payment ÷ price at that time

The dividend grows once a year at your dividend growth rate. The share price grows smoothly at the price growth rate, so reinvested payments buy at the price of the day.

Examples

  • 1,000 shares at $50 with a 3% yield: $1,500 a year, or $375 a quarter.
  • Over 10 years with dividends growing 5% a year, that adds up to $18,866.84 without reinvesting.
  • Reinvesting quarterly while the price grows 4% a year: $22,225.18 in dividends, 1,360.13 shares, and $3,102.58 of income in year 10.

Yield on cost

If a company raises its dividend while you hold the shares, your income grows even though you bought at the old price. Yield on cost divides today's dividend by what you paid. Long-held dividend growers can reach double-digit yield on cost.

Limitations

  • Dividends can be cut or suspended. Past yields do not guarantee future payments.
  • Taxes on dividends and trading costs are not included.
  • Growth rates are steady. Real prices and payouts change unevenly.

Frequently asked questions

How do I calculate dividend income?

Multiply the number of shares by the yearly dividend per share. 1,000 shares paying $1.50 a year give $1,500.

What is a DRIP?

A dividend reinvestment plan uses each dividend to buy more shares, which then earn dividends of their own.

What is dividend yield?

The yearly dividend per share divided by the share price. $1.50 on a $50 share is a 3% yield.

Often used together with the Dividend Calculator.