Project dividend income over time, with or without reinvestment, and see your yield on original cost.
What this calculator does
Dividend investing has two engines: the dividend itself, and the growth in that dividend over time. Reinvesting the payouts adds a third, since each reinvested dividend buys shares that pay their own dividends.
The yield on cost line is the one long-term holders watch. A stock bought at a 3% yield that raises its dividend 7% a year yields over 8% on your original investment after fifteen years.
How to use it
- Enter your investment amount and current dividend yield.
- Set the holding period and expected dividend growth.
- Choose whether to reinvest dividends or take the cash.
The calculation
annual dividend = portfolio value × yield
DRIP: dividends buy more shares, compounding the payout
yield on cost = current dividend ÷ original investment
A worked example
On the values this calculator opens with, the total return is $153,095.13. Underneath, First-year dividend comes out at $1,750 and Final-year dividend at $5,672.6. Change any field and every figure updates as you type.
Common questions
What is DRIP?
A dividend reinvestment plan automatically buys more shares with each payout, compounding your income without you doing anything.
Is a high yield always good?
No — an unusually high yield often signals a falling share price or a dividend at risk of being cut. Sustainability matters more than headline yield.
How are dividends taxed?
Qualified dividends are taxed at long-term capital gains rates; ordinary dividends at your marginal rate. Rules vary by account type and country.