Dividend Calculator
Enter your investment, dividend yield, growth and years to see dividend income and how reinvesting changes the result.
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Estimate dividend income and the effect of reinvesting dividends over time.
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How dividend income is calculated
Annual dividend income is the amount invested × the dividend yield. For example, $50,000 invested at a 3% yield pays about $1,500 a year, or $125 a month. The dividend yield is the annual dividend divided by the share price, so it changes as prices and payouts change. This calculator also projects what happens over several years if the price grows each year, with or without reinvesting the dividends.
Dividend income by amount and yield
| Invested | Dividend yield | Dividends per year | Per month |
|---|---|---|---|
| $10,000 | 2% | $200 | $17 |
| $10,000 | 4% | $400 | $33 |
| $50,000 | 3% | $1,500 | $125 |
| $100,000 | 3% | $3,000 | $250 |
| $100,000 | 4% | $4,000 | $333 |
| $250,000 | 3% | $7,500 | $625 |
Reinvesting dividends
Reinvesting uses each year’s dividends to buy more shares, which then pay more dividends. On $50,000 at a 3% yield and 5% price growth for 10 years, reinvesting gives about $107,946 and total dividends of about $21,730; without reinvesting, about $81,445 and $18,867 of dividends received.
- A very high yield can signal a falling share price or a payout that may be cut, so a higher yield is not automatically better.
- Dividends are generally taxable income; the rate depends on your situation, so check with a tax professional.
- Dividend amounts are not guaranteed and companies can raise, cut or stop them.
This is a planning estimate, not a forecast and not financial advice. See also the investment calculator and the compound interest calculator.
How to use the dividend calculator
- Enter the amount you invest and the dividend yield.
- Enter the expected annual price growth and the number of years, and choose whether to reinvest.
- Read your annual, monthly and quarterly dividend income and the portfolio value at the end.
Frequently asked questions
How do I calculate dividend income?
Multiply the amount invested by the dividend yield. $50,000 at 3% pays about $1,500 a year, or $125 a month.
What is dividend yield?
The annual dividend per share divided by the share price, shown as a percentage.
How much do I need to invest to earn $1,000 a month in dividends?
You need $12,000 of annual dividends. At a 3% yield that is $400,000; at 4%, $300,000; at 5%, $240,000. Higher yields can carry more risk.
Is reinvesting dividends worth it?
It can increase long-term growth because the reinvested dividends earn dividends too. The example above shows the difference over 10 years.
Are dividends guaranteed?
No. Companies can change or stop their dividends at any time.
Related tools: Investment calculator · Compound interest calculator · ROI calculator