Dividend Calculator
Free dividend calculator with DRIP (reinvestment) projection. Enter stock price, dividend per share, shares owned, and expected dividend growth — see annual income now and how it compounds over 10 years if you reinvest.
📊 Portfolio Tracker
Track every dividend stock you own. Total income, blended yield, monthly cashflow — all in one place.
📅 Monthly Dividend Calendar
See which months your dividends land. Pick the ex-div quarter for each stock.
🔥 FIRE Target Calculator
How big does your portfolio need to be to live off dividends?
Try the mobile app
Dividend Tracker for Android — multi-stock portfolio, ex-div dates, monthly cashflow chart.
How to Use This Dividend Calculator
- Enter the current stock price and the annual dividend per share (sum the last 4 quarterly payments).
- Enter how many shares you own (or plan to buy).
- Set a realistic dividend growth rate — 5–7% is healthy for "dividend aristocrats", more is risky.
How Dividend Income Is Calculated
Year-1 income is straightforward. The DRIP projection assumes every dividend buys new shares at the current price, and dividends grow at your assumed rate each year.
yield = (dividend per share ÷ stock price) × 100
DRIP year by year:
new shares = annual income ÷ stock price
shares += new shares
dividend ×= (1 + growth%)
This assumes stock price stays flat — a conservative way to see the pure income-compounding effect. In reality, dividend-growth stocks usually appreciate too.
The power is reinvestment; the trap is chasing yield
Dividend yield is the annual dividend as a percentage of the share price. Two things matter beyond that headline number. First, reinvesting dividends instead of spending them buys more shares, which pay more dividends, which buy more shares again — over years that effect can dwarf the dividends alone, which is why turning reinvestment on changes the projection so dramatically. Second, a very high yield is not automatically a good thing: it often means the share price has fallen because the market doubts the company, and an unsustainable payout can be cut. A modest, steadily growing dividend from a healthy business usually beats a sky-high one that doesn't last.
Whenever talk turned to dividends — and across two decades in IT support it often did — I saw the same two recurring mistakes. The first was being magnetised by the biggest yield on the screen — people would pick a stock purely because it advertised, say, 12%, without asking why a company has to offer that much to attract buyers. More than once that yield was a warning sign, not a gift, and the payout got cut. The second was treating dividends as pocket money and spending every one, then wondering why the pot never grew. The colleagues who quietly reinvested into solid, boring companies did better than the ones hunting the flashiest number. I'm not a financial adviser — that's just the pattern I kept seeing.
— Hill, 20 years in IT supportThis is a projection from the numbers you enter, not investment advice. Dividends aren't guaranteed and can be cut; for real decisions consult a qualified adviser.
Frequently Asked Questions
What is dividend yield?
Dividend yield is annual dividend per share ÷ stock price, expressed as a percent. A $4 annual dividend on a $100 stock is a 4% yield. Yields above 6% deserve extra scrutiny — they often signal trouble at the company.
What is DRIP?
Dividend reinvestment plan. Instead of taking dividends as cash, you buy more shares of the same stock. Over years, this compounds — you earn dividends on the new shares too. Many brokers offer commission-free DRIP.
Are dividends taxed?
Yes, in most countries. Qualified US dividends are taxed at the long-term capital gains rate (0/15/20%). UK dividends have a £500 allowance then 8.75/33.75/39.35% bands. Hold dividend stocks in tax-advantaged accounts (IRA, ISA, MPF) when possible.
Is a higher dividend yield always better?
No. An unusually high yield often reflects a falling share price and can signal a dividend that's at risk of being cut. A lower but steadily growing dividend from a financially healthy company is frequently the safer long-term choice. Look at why the yield is high, not just the number.