💰

Dividend Calculator (Yield, DRIP & Growth)

Project dividend income, DRIP compounding, and yield-on-cost over time with US qualified-dividend tax handling.

FINANCE

Model 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.

Disclaimer: For US investors and educational use only. Past dividend growth does not guarantee future increases - companies can cut or suspend dividends (banks 2009, oil majors 2020). Tax treatment depends on holding period, account type, and your full tax situation including the 3.8% NIIT. Not tax or investment advice; diversify and consult a licensed advisor.

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.

How do you want to size your position?

I know my share countI know my dollar amount

Starting Shares

Current Share Price ($)

Annual Dividend per Share ($)

Dividend Payment Frequency4× per year

Dividend Growth Rate (% per year)Typical dividend growers raise 5-10% per year. Default 6%.

Share Price Growth Rate (% per year)Long-term S&P 500 averages ~7% after inflation. Default 7%.

Time Horizon (years)

Tax Rate on Qualified Dividends

Reinvest Dividends (DRIP)?Yes - reinvest all dividends

Final Portfolio Value

$39,540

Starting Dividend Yield5.00%

Current Annual Dividend Income$212.50/yr

Projected Annual Dividend (Year N)$1,314/yr

Total Dividends Collected$12,104

Yield-on-Cost (Year N)15.13%

Year-N dividend per share ÷ your original cost basis per share.

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.

Loading calculator…

Frequently Asked Questions

How are US dividends taxed?

Qualified dividends (most US-listed common stocks held more than 60 days around the ex-dividend date) are taxed at long-term capital gains rates: 0%, 15%, or 20% depending on your income. High earners (above ~$200k single / $250k joint) also owe the 3.8% Net Investment Income Tax. Non-qualified or ordinary dividends - from REITs, MLPs, money market funds, and shares held only briefly - are taxed at your marginal income tax rate, which can be up to 37% federal.

What is DRIP and is it worth it?

DRIP (Dividend Reinvestment Plan) automatically uses each dividend payout to buy additional shares of the same stock, usually commission-free. The reinvested shares then pay dividends themselves, compounding your share count. Over a 30-year horizon, DRIP can roughly double your total return versus pocketing the cash. DRIP is most powerful inside a tax-advantaged account (IRA, Roth, 401k) where you don't owe tax on the reinvested dividends each year.

What is yield-on-cost?

Yield-on-cost (YOC) is the current annual dividend per share divided by your original purchase price per share. If you bought a stock at $50 paying $2.50/share (5% starting yield), and 20 years later it pays $8/share, your YOC is 16% - even if the current market yield is still 3%. YOC measures the income return on your original investment and grows over time with dividend hikes.

Is a high dividend yield always good?

No. A high yield can signal that the market expects a dividend cut, or that the company is mature with little growth left. Yields above 7-8% deserve scrutiny - check the payout ratio (dividend ÷ earnings), free cash flow coverage, and debt levels. A lower-yielding stock with 10% annual dividend growth often delivers higher total return and higher future yield-on-cost than a 6% yielder growing 2% per year.

What is the difference between qualified and ordinary dividends?

Qualified dividends come from US corporations (or qualified foreign corporations) on shares you've held more than 60 days during the 121-day window around the ex-dividend date. They get the favorable 0/15/20% long-term capital gains tax rates. Ordinary (non-qualified) dividends - from REITs, MLPs, mutual fund short-term gains distributions, and shares held only briefly - are taxed at your marginal income rate. Your 1099-DIV separates the two in Boxes 1a and 1b.

Dividend Calculator (Yield, DRIP & Growth)

Dividend Calculator (Yield, DRIP & Growth)

Year-by-Year Projection

Dividend Investing - What You Need to Know

Frequently Asked Questions

Related Calculators

Mortgage Calculator

Paycheck Calculator (Take-Home Pay)

Time Card / Timesheet Calculator

Compound Interest Calculator

Auto Loan Calculator

401(k) Retirement Calculator

Dividend Calculator (Yield, DRIP & Growth)

Year-by-Year Projection

Dividend Investing - What You Need to Know