Dividend Calculator (Yield, DRIP & Growth)
Project dividend income, DRIP compounding, and yield-on-cost over time with US qualified-dividend tax handling.
FINANCEModel your dividend portfolio year by year. Estimate current annual dividend income, projected income at the end of your horizon, total dividends collected, final portfolio value, and yield-on-cost, with optional DRIP reinvestment and US qualified-dividend tax rates (0/15/20/37%).
The calculator iterates year by year. Each year: dividend per share grows by your Dividend Growth Rate, share price grows by your Price Growth Rate, after-tax income is shares × div_per_share × (1 - tax_rate), and if DRIP is enabled the income buys additional shares at year-end price. Yield-on-cost = year-N dividend per share ÷ original cost basis per share. Worked example: 100 shares at $50 ($5,000 cost basis), $2.50 annual dividend (5% starting yield), 6% DGR, 7% price growth, 20-year DRIP, 15% qualified-dividend tax. Final portfolio value ~$36,000, projected year-20 dividend ~$1,500/yr after tax, yield-on-cost ~14.4%. Without DRIP, total cash dividends collected ~$7,800 and the final portfolio is ~$19,300 worth of unreinvested shares.
Dividend Calculator (Yield, DRIP & Growth)
Project your dividend income, total returns, and yield-on-cost over time. Models dividend growth, share price appreciation, DRIP reinvestment, and US qualified-dividend tax rates.
Year-by-Year Projection
| Year | Shares | Price | Div/Share | Income (after tax) | Portfolio Value |
|---|---|---|---|---|---|
| 1 | 103.97 | $53.50 | $2.50 | $213 | $5,563 |
| 2 | 108.06 | $57.25 | $2.65 | $234 | $6,186 |
| 3 | 112.28 | $61.25 | $2.81 | $258 | $6,877 |
| 4 | 116.61 | $65.54 | $2.98 | $284 | $7,643 |
| 5 | 121.07 | $70.13 | $3.16 | $313 | $8,490 |
| 6 | 125.66 | $75.04 | $3.35 | $344 | $9,429 |
| 7 | 130.38 | $80.29 | $3.55 | $379 | $10,468 |
| 8 | 135.23 | $85.91 | $3.76 | $417 | $11,617 |
| 9 | 140.21 | $91.92 | $3.98 | $458 | $12,889 |
| 10 | 145.33 | $98.36 | $4.22 | $503 | $14,294 |
| 11 | 150.58 | $105.24 | $4.48 | $553 | $15,848 |
| 12 | 155.98 | $112.61 | $4.75 | $607 | $17,564 |
| 13 | 161.51 | $120.49 | $5.03 | $667 | $19,461 |
| 14 | 167.19 | $128.93 | $5.33 | $732 | $21,555 |
| 15 | 173.01 | $137.95 | $5.65 | $803 | $23,867 |
| 16 | 178.98 | $147.61 | $5.99 | $881 | $26,419 |
| 17 | 185.10 | $157.94 | $6.35 | $966 | $29,235 |
| 18 | 191.37 | $169.00 | $6.73 | $1,059 | $32,340 |
| 19 | 197.79 | $180.83 | $7.14 | $1,161 | $35,765 |
| 20 | 204.36 | $193.48 | $7.56 | $1,272 | $39,540 |
Dividend Investing - What You Need to Know
US dividends fall into two tax buckets. Qualified dividends (most US-listed stocks held >60 days) are taxed at long-term capital gains rates: 0% for low brackets, 15% for typical filers, and 20% for high earners (plus 3.8% Net Investment Income Tax for incomes above ~$200k single / $250k joint). Ordinary or non-qualified dividends (REITs, MLPs, short-holding-period shares) are taxed at your marginal income rate, which can be as high as 37% federal.
The power of DRIP comes from compounding shares, not just dollars. When you reinvest dividends automatically, each payout buys more shares, which themselves pay dividends next quarter. Over a 30-year horizon, reinvested dividends can roughly double your total return versus pocketing the cash - even with identical underlying stock performance. The catch: you still owe tax on reinvested dividends in a taxable account, so DRIP shines most inside an IRA or Roth.
High yield is not the same as high return. Mature high-yielders like utilities or telecoms pay ~4-6% yields but grow dividends only 2-3% per year. Dividend growers like Microsoft or Visa pay just 0.7-1.0% but raise dividends 10%+ per year. Over 20 years, a 1% yield growing 10% per year ends up yielding more on cost than a 5% yield growing 2% per year - and usually with better total return. Match the strategy to your time horizon and income needs.
Estimates only. Past dividend growth does not guarantee future increases - companies can and do cut or suspend dividends (banks in 2009, oil majors in 2020). Diversify across sectors. Not tax or investment advice.