Dividend Calculator
Project your dividend income, see your yield on cost climb as payouts grow, and watch reinvestment compound your passive income year by year.
Dividends grow: a 3.5% starting yield with 6% annual raises becomes a 23.04% yield on cost after 20 years — $23,040/yr from a $100,000 start.
$3,500
year-1 income on a $100,000 position at a 3.5% yield
$23,040
annual income after 20 years of 6% dividend growth, reinvested
23.04%
yield on cost after 20 years — vs the 3.5% you started with
The power of growing dividends
A dividend stock isn't just a yield today — it's a rising income stream.
Income today, growing tomorrow
Your yield sets the starting income — $3,500/yr in the example. But the real story is growth: as the company hikes its dividend each year, the same shares pay more, with no extra investment from you.
Yield on cost climbs
Buy at a 3.5% yield and hold through 6% annual raises, and after 20 years you're effectively earning a 23.04% yield on what you paid. Long-term dividend-growth investors prize this rising yield on cost.
Reinvesting builds a snowball
With reinvestment on, dividends buy more shares that pay their own dividends. Over the period you collect $206,202 in dividends — all compounding back into the position.
How the Dividend Calculator Works
Formula
Year-1 income = Investment × Dividend yield
Incomeₜ = shares × dps₀ × (1 + dividend growth)^(t−1)
Yield on cost = Final annual income ÷ Original investment
If reinvesting: each year's dividends buy more shares
at that year's price, raising future income.Enter your investment
The amount you're putting in (or already hold).
Enter the dividend yield
The current annual payout as a % of price.
Set growth assumptions
How fast the dividend and share price rise.
Choose a horizon and DRIP
Years held, and whether to reinvest dividends.
See your income
Annual/monthly income, yield on cost, and the growth curve.
Dividend investing is about a growing stream of cash, not just a one-time yield. A $100,000 position at a 3.5% yield starts at $3,500/yr — but with 6% annual dividend increases and reinvestment, the income compounds to $23,040/yr over 20 years, a 23.04% yield on your original cost.
The two big levers are dividend growth (companies raising their payouts) and reinvestment (using dividends to buy more shares). Together they create the 'dividend snowball' that long-term income investors rely on. Remember these are projections: real yields and growth vary, dividends can be cut, and taxes apply — this is an educational tool, not investment advice.
Frequently Asked Questions
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