Investor Tool

Dividend Calculator

Project dividend income, DRIP reinvestment growth, and yield on cost over time.

Dividend Calculator

Project the income from a dividend-paying investment over time. Enter an amount, a starting dividend yield, and an annual dividend growth rate to see your yearly income, cumulative dividends, and yield on cost, and toggle reinvestment (DRIP) to compare compounding income against taking cash. This models dividends only, not share-price changes, and dividends are never guaranteed. The figures are a hypothetical illustration for education, not advice, and everything stays in your browser.

Investment Amount

Dividend Yield (%)

Annual Dividend Growth (%)

Years Held

yrs

Reinvest dividends back in (DRIP)?

Enter an amount, yield, and time horizon to project your dividend income.

How this is worked out

Dividends only: This tool models dividends only. It does not assume the share price rises or falls, so it leaves out capital gains and losses. Real total return also depends on the share price.

Reinvestment (DRIP): With reinvestment on, each dividend is assumed to buy more shares at the same yield, so income compounds. With it off, dividends are taken as cash and the balance stays at your original amount.

Growth rate: The annual dividend growth rate you enter is an assumption applied every year. Real companies can raise, freeze, cut, or suspend dividends, so payouts are not guaranteed.

Not modeled: Share-price changes, taxes on dividends, and fees are not included. The figures are a hypothetical illustration, not a forecast or financial advice.

Common questions about dividends

How is dividend income calculated?

Annual income is your invested amount times the dividend yield, grown each year by the dividend growth rate you enter. With reinvestment on, each payout is assumed to buy more shares, so the income base compounds. All figures are hypothetical and based on your inputs.

What is DRIP (dividend reinvestment)?

DRIP means automatically using dividends to buy more shares instead of taking them as cash. Over time this can compound your income, because the new shares also pay dividends. This tool lets you compare reinvesting against taking cash.

What is yield on cost?

Yield on cost is your current annual dividend income as a percentage of what you originally paid. If a company grows its dividend, your yield on cost can rise over time, even though the yield quoted on today’s price may look lower.

Does this include share price changes?

No. The calculator models dividends only and assumes a flat share price, so it does not show capital gains or losses. Real total return depends on the price too, so treat this as the income piece only.

Are dividends guaranteed?

No. Dividends are decided by a company board and can be reduced or suspended at any time, especially in a downturn. The growth rate here is an assumption you choose, not a promise.

Is this calculator financial advice?

No. It is an educational tool for projecting dividend income from assumptions you enter. It does not recommend any stock and is not financial advice.

These results are estimates, not predictions. They are based on the inputs you provide and assumed rates of return, which are not guaranteed. Real markets rise and fall every year. For educational purposes only, not financial advice.

From Money Masters

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