Dividend Calculator (Income & Reinvestment)
Enter your portfolio value, dividend yield, and growth assumptions to see the income your holdings could pay now and years from now. Toggle reinvestment to watch dividends buy shares that pay dividends of their own.
What your dividend-paying holdings are worth today
Annual dividends as a share of today's value
How fast the payout itself grows each year
Price growth on top of the dividend
Dividends
Dividend income, year 1
$2,500
about $208 per month at today's yield
Dividend income in year 20
$10,333
10.3% yield on your original $100,000
Portfolio value in year 20
$368,728
with every dividend reinvested
Total dividends collected
$110,600
over 20 years
Year by year
| Year | Dividend income | Portfolio value | Dividends to date |
|---|---|---|---|
| 1 | $2,500 | $106,500 | $2,500 |
| 2 | $2,688 | $113,448 | $5,188 |
| 3 | $2,891 | $120,877 | $8,079 |
| 4 | $3,110 | $128,822 | $11,189 |
| 5 | $3,346 | $137,321 | $14,535 |
| 6 | $3,601 | $146,415 | $18,137 |
| 7 | $3,877 | $156,149 | $22,013 |
| 8 | $4,174 | $166,569 | $26,187 |
| 9 | $4,496 | $177,727 | $30,683 |
| 10 | $4,843 | $189,679 | $35,526 |
| 11 | $5,218 | $202,484 | $40,744 |
| 12 | $5,624 | $216,208 | $46,368 |
| 13 | $6,063 | $230,919 | $52,431 |
| 14 | $6,538 | $246,693 | $58,969 |
| 15 | $7,051 | $263,613 | $66,020 |
| 16 | $7,608 | $281,765 | $73,628 |
| 17 | $8,210 | $301,245 | $81,837 |
| 18 | $8,862 | $322,156 | $90,699 |
| 19 | $9,568 | $344,610 | $100,267 |
| 20 | $10,333 | $368,728 | $110,600 |
An educational projection: real payouts change with company decisions and market prices, and no yield or growth rate is guaranteed.
The mechanics under the hood
The calculator models your portfolio as shares: each year the dividend per share grows at your dividend growth rate, the share price grows at your appreciation rate, and your income for the year is simply shares times payout. If you choose to reinvest, the year's dividends buy more shares at the new price, and those shares join the payout the following year. That loop is what people mean by DRIP compounding: the payout grows for two reasons at once, a bigger dividend per share and more shares collecting it. Taking dividends as cash keeps the income stream but switches off the second engine.
Run the defaults: $100,000 at a 2.5% yield
Today that portfolio pays about $2,500 a year, roughly $208 a month. Hold it for 20 years with dividends growing 5% annually, prices appreciating 4%, and every payout reinvested, and the projection reaches about $10,300 of income in year 20, from a portfolio worth about $369,000, with about $110,600 of dividends collected along the way. Flip the toggle to cash and year-20 income drops to about $6,300 and the portfolio to about $219,000: the difference is purely the reinvested shares. The same compounding arithmetic drives it as any other growth projection, which our compound interest guide covers in plain English.
Yield today versus growth tomorrow
Dividend investors constantly trade these off. A high yield pays more now but often grows slowly or carries more risk; a modest yield with strong growth starts small and overtakes later. The bridge between them is yield on cost: income divided by what you originally paid. In the default run, the 2.5% starting yield becomes roughly a 10% yield on cost by year 20, meaning the portfolio pays a tenth of your original stake every year. When comparing candidates, run both through this page and watch which one wins over your actual horizon, not over the next quarter.
Two housekeeping notes
First, taxes: dividends in a taxable account are taxed in the year they arrive, reinvested or not, and qualified dividends generally receive better treatment than ordinary income; the capital gains tax calculator covers how investment income is taxed. Second, permanence: payouts are decided quarter by quarter, and cuts happen, so treat every line of this projection as an educational estimate rather than a schedule of arriving checks.
Frequently asked questions
What is a dividend yield?
The cash a holding pays out per year divided by its current price, expressed as a percentage. A $100,000 portfolio with a 2.5% yield pays about $2,500 a year. Yield moves with price: when prices fall, the yield on the same payout rises, which is why a very high yield is sometimes a warning rather than a gift.
What is DRIP, or dividend reinvestment?
A dividend reinvestment plan automatically uses each payout to buy more shares instead of paying you cash. The new shares pay dividends of their own, so income compounds: more shares, bigger payout, even more shares. Most brokerage accounts let you switch it on per holding.
What is yield on cost?
Your current annual dividend income divided by what you originally invested, not by today's value. It shows how a growing payout rewards patience: a 2.5% yield growing 5% a year, with reinvestment, works out to roughly a 10% yield on cost after 20 years in this calculator's default projection.
Can dividends be cut?
Yes. Dividends are a choice a company makes each quarter, not a contract, and in recessions even long-standing payers reduce or suspend them. Spreading income across many holdings or a broad fund softens the blow any single cut can deal to your income.
Do I pay taxes on reinvested dividends?
In a regular taxable account, generally yes: dividends count as income in the year they are paid even if they are immediately reinvested. Qualified dividends typically get friendlier treatment than ordinary income. This tool ignores taxes entirely; treat its numbers as pre-tax estimates.
Does this calculator save my numbers?
No. Everything runs in your browser and nothing you type is stored or sent anywhere.
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