Dividend Calculator
Project future dividend income from your portfolio value, dividend yield, its annual growth, and whether you reinvest it.
Your dividend portfolio
What you already have invested.
Your portfolio's current dividend yield.
How much the dividend grows each year (typical historical range: 5-8%).
Share price appreciation, not counting dividends.
0 = just your current situation.
15% is a common long-term rate for qualified dividends; adjust for your own bracket.
The net dividend (after tax) is reinvested each year, growing the portfolio to generate more dividends the following year.
Estimated net monthly dividend
$1,234
Gross annual: $17,421 · Net annual: $14,808
Portfolio value
$157,241
Total contributed
$34,000
Net dividends received
$82,797
Net annual dividend over time
This estimate assumes the dividend yield and its growth rate stay constant, which in practice varies by company and economic cycle. The tax rate is illustrative only — check your actual tax situation, since your real rate depends on your income bracket and whether the dividends are qualified or ordinary.
Estimate calculated from the numbers you entered. This is not financial, tax, or legal advice — always consult a qualified professional before making significant financial decisions.
Scenario comparison
Try different values and click «Save this scenario» to compare them here, side by side.
What this dividend calculator does
It projects how a dividend-paying stock or fund portfolio evolves year by year, factoring in share price appreciation, annual dividend growth, any recurring contributions you make, and — if you turn it on — the reinvestment of the net dividends you collect (DRIP). The result includes the portfolio's final value, the net monthly dividend you'd be collecting at the end of the period, and the total net dividends received across every simulated year.
How the year-by-year math works
Each year, the gross dividend is calculated against the portfolio's value at the start of that year, using a yield that has grown relative to the year before:
Net dividend = Portfolio value × Yield × (1 − Tax rate)After that, the portfolio appreciates at the price-growth rate you entered, adds any recurring contributions, and — if reinvestment is on — adds the net dividend collected that year too. The yield itself is recalculated each year by multiplying it by (1 + dividend growth rate), so the dividend grows two ways at once: from the dividend's own growth rate, and from the portfolio simply getting bigger.
A worked example
Starting with $10,000 at a 4% yield, a 6% annual dividend growth rate, 4% annual price appreciation, contributing $100/month with reinvestment turned on and a 15% tax rate, after 20 years the portfolio would reach about $157,241 (of which $34,000 is your own contributions), generating a final net annual dividend of $14,808 (about $1,234/month), after collecting a total of $82,797 in net dividends over those 20 years.
Common mistakes when projecting dividends
- Assuming too high a dividend growth rate: a sustained 6-8% annual increase for decades is optimistic even for companies with the best track records; more conservative numbers give you a more realistic projection.
- Ignoring taxes:looking only at the gross dividend overstates the cash that actually lands in your account. US dividend taxation also isn't one-size-fits-all — qualified dividends get long-term capital gains rates, while ordinary (non-qualified) dividends are taxed as regular income, so your real rate depends on the type of dividend and your tax bracket.
- Concentrating in a single high-yield stock: an unusually high yield can be a signal that the market expects a dividend cut, not necessarily a bargain.
- Confusing high yield with a better total return: a stock with a lower yield but strong price and dividend growth can outperform a high-yield stock with stagnant growth over the long run.
- Not checking the dividend's track record over time: some companies keep a high dividend by taking on debt or cutting back on reinvesting in the business, which can put future payouts at risk — it's worth checking whether the dividend is actually covered by real earnings.
Frequently asked questions
What is "yield on cost" and why does it grow over time?
Yield on cost is your dividend yield calculated against what you originally paid, not against the portfolio's current value. If a company raises its dividend every year, your yield on cost keeps climbing even though the "market" yield — based on today's price — might stay flat. It's a way of seeing how much your original investment is earning you now, years later.
What does dividend reinvestment (DRIP) mean?
DRIP stands for Dividend Reinvestment Plan: instead of taking your dividend as cash, you use it to buy more shares of the same holding automatically. That speeds up growth because each reinvested dividend goes on to generate its own dividends down the road — compounding on top of compounding.
Why does this calculator default to a 15% tax rate?
In the US, dividend taxation depends on whether a payout counts as a "qualified" dividend or an "ordinary" (non-qualified) one. Qualified dividends — the majority from US stocks held for more than 60 days — are taxed at long-term capital gains rates, which are 0%, 15%, or 20% depending on your income. Ordinary dividends are taxed as regular income, at your marginal tax rate. This calculator doesn't model the qualified/ordinary distinction or your specific tax bracket — the tax rate field is just an estimate you control, and 15% reflects a common long-term rate for many investors. Adjust it to match your own situation.
Is it realistic to assume the dividend grows every year?
It depends heavily on the company or fund. Some stocks — often called "Dividend Aristocrats" or "Dividend Kings" — have raised their payout every year for decades, but that's never guaranteed: dividends can be frozen or cut, especially during downturns. If you're not sure, use a conservative growth rate.
Does this calculator account for the stock price falling?
Price appreciation is entered as a constant annual percentage that you choose — it doesn't simulate sudden drops or real market volatility. In practice, any asset's price moves unevenly, sometimes sharply down. Treat the result as an average-case projection, not a promise.
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