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Dividends calculator
Project long-term dividend income
Model dividend income, reinvestment plans, taxes, and growth assumptions. Adjust the inputs to see how DRIP participation, contributions, and market performance influence your income stream.
Use a ticker to quickly reference a company. Dividend yield and growth assumptions remain editable.
Initial capital allocated to your dividend strategy.
Annual yield expressed as a percentage of the share price.
Adjusts how often dividends are paid and compounded.
Reinvest dividends to buy additional shares automatically.
Additional capital you add each year.
Historical average is 3–5% for stable dividend payers.
Long-term S&P 500 average is roughly 7–10%.
Use presets: 0% (tax-advantaged), 15% (qualified), 22% (ordinary income).
Annual dividend income that is exempt from taxes.
Project between 1 and 50 years (or the equivalent in months).
Projection summary
Updated in real time$2,029,605
Total market value at the end of the projection
$1,067,757
Gross income collected over the investment horizon
$907,594
Cash kept after taxes and exemptions
$160,164
Tax obligations on dividend income
$340,000
Initial principal plus recurring contributions
496.94%
Portfolio appreciation relative to capital invested
9.34%
Average compounded growth rate per year
56.07%
Final year dividends relative to capital invested
6,328.4
Share count reflects all reinvested dividends
Portfolio value vs. contributions
Track how your invested principal compares with the market value of your portfolio.
Annual dividend income
Compare gross dividends with the cash you keep after taxes.
DRIP vs. Cash Dividends
Visualize the compounding power of reinvesting dividends compared with taking them in cash.
Year-by-year breakdown
Follow contributions, dividends, and taxes for each calendar year.
| Year | Starting value | Contributions | Dividends | Tax | Net dividends | Reinvested | Ending value | Annual yield |
|---|---|---|---|---|---|---|---|---|
| Year 1 | $100,000 | $12,000 | $4,536 | $680 | $3,855 | $3,855 | $122,441 | 4.54% |
| Year 2 | $122,441 | $12,000 | $5,761 | $864 | $4,896 | $4,896 | $147,308 | 4.7% |
| Year 3 | $147,308 | $12,000 | $7,211 | $1,082 | $6,130 | $6,130 | $174,944 | 4.9% |
| Year 4 | $174,944 | $12,000 | $8,931 | $1,340 | $7,591 | $7,591 | $205,754 | 5.1% |
| Year 5 | $205,754 | $12,000 | $10,969 | $1,645 | $9,324 | $9,324 | $240,208 | 5.33% |
| Year 6 | $240,208 | $12,000 | $13,389 | $2,008 | $11,381 | $11,381 | $278,861 | 5.57% |
| Year 7 | $278,861 | $12,000 | $16,267 | $2,440 | $13,827 | $13,827 | $322,368 | 5.83% |
| Year 8 | $322,368 | $12,000 | $19,693 | $2,954 | $16,739 | $16,739 | $371,504 | 6.11% |
| Year 9 | $371,504 | $12,000 | $23,780 | $3,567 | $20,213 | $20,213 | $427,188 | 6.4% |
| Year 10 | $427,188 | $12,000 | $28,665 | $4,300 | $24,365 | $24,365 | $490,517 | 6.71% |
| Year 11 | $490,517 | $12,000 | $34,519 | $5,178 | $29,341 | $29,341 | $562,803 | 7.04% |
| Year 12 | $562,803 | $12,000 | $41,551 | $6,233 | $35,318 | $35,318 | $645,619 | 7.38% |
| Year 13 | $645,619 | $12,000 | $50,020 | $7,503 | $42,517 | $42,517 | $740,866 | 7.75% |
| Year 14 | $740,866 | $12,000 | $60,252 | $9,038 | $51,214 | $51,214 | $850,840 | 8.13% |
| Year 15 | $850,840 | $12,000 | $72,652 | $10,898 | $61,754 | $61,754 | $978,335 | 8.54% |
| Year 16 | $978,335 | $12,000 | $87,730 | $13,159 | $74,570 | $74,570 | $1,126,762 | 8.97% |
| Year 17 | $1,126,762 | $12,000 | $106,130 | $15,920 | $90,211 | $90,211 | $1,300,302 | 9.42% |
| Year 18 | $1,300,302 | $12,000 | $128,671 | $19,301 | $109,370 | $109,370 | $1,504,109 | 9.9% |
| Year 19 | $1,504,109 | $12,000 | $156,395 | $23,459 | $132,935 | $132,935 | $1,744,563 | 10.4% |
| Year 20 | $1,744,563 | $12,000 | $190,637 | $28,596 | $162,042 | $162,042 | $2,029,605 | 10.93% |
Scenario inputs
A quick summary of the assumptions driving the projection.
- Investment type
- Single stock
- Starting principal
- $100,000
- Initial dividend yield
- 4%
- Distribution frequency
- quarterly
- Dividend reinvestment (DRIP)
- Enabled
- Annual contribution
- $12,000
- Dividend growth rate
- 5%
- Share price appreciation
- 6%
- Dividend tax rate
- 15%
- Tax-exempt allowance
- $0
- Investment horizon
- 20 years
Dividend investing fundamentals
Build your knowledge with concise explainers covering dividend basics, reinvestment strategies, and tax considerations.
Dividends are distributions of a company's earnings to shareholders, typically paid quarterly. They represent a share of profits and provide passive income to investors.
- Passive income: Regular cash flow without needing to sell shares.
- Total return driver: Dividends plus price appreciation combine to form total return.
- Quality signal: Companies that maintain dividends often demonstrate stability.
- Inflation hedge: Growing payouts can offset rising costs of living.
Annual dividend income is determined by multiplying the number of shares you own by the dividend per share. With a reinvestment plan, each cash payout automatically purchases additional shares that participate in future payouts.
Dividend Reinvestment (DRIP)
Example: A $1,000 dividend with a $50 share price purchases 20 new shares. Those shares generate dividends in the next cycle, creating a snowball effect.
We also factor in your tax settings. Qualified dividends may be taxed at 0%, 15%, or 20% depending on income, while ordinary dividends are taxed at your regular income rate. Tax-advantaged accounts can shield income entirely.
Dividend Reinvestment Plans automate the purchase of additional shares using your cash payouts. They are a powerful tool for compounding because your share count steadily increases without any extra effort.
- Compound growth through reinvesting every payment.
- Dollar-cost averaging by buying more shares at varied prices.
- Access to fractional shares and commission-free purchases with many brokers.
Make the most of your dividend income by understanding how payouts are taxed. Qualified dividends enjoy favorable capital gains rates when holding periods are met, while ordinary dividends are taxed at regular income levels.
- Qualified dividends: Hold the stock for at least 60 days to qualify for lower tax rates.
- Ordinary dividends: REITs and certain international stocks are taxed as ordinary income.
- Tax-advantaged accounts: Traditional IRAs defer taxes, while Roth IRAs allow tax-free withdrawals.
Evaluating dividend stocks involves more than just yield. Consider growth, safety, and sustainability metrics to build a resilient income portfolio.
- Dividend growth rate: The percentage increase in dividends each year.
- Payout ratio: Dividends divided by earnings — values under 60% often signal sustainable payouts.
- Yield on cost: Compares current annual income with your original investment.
- Dividend coverage: Earnings divided by dividend payments; look for ratios above 1.5x.
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