Dividend Calculator
Project dividend income with reinvestment and dividend growth.
Dividend Growth & Reinvestment (DRIP)
This calculator projects your account balance and dividend income over time. You enter an initial investment, monthly contributions, the current dividend yield (as a percentage), and an assumed dividend growth rate. You can toggle dividend reinvestment (DRIP) on or off: with DRIP, dividends buy more shares each period, so growth compounds; without DRIP, you see the balance from contributions only plus total dividends paid out. Dividend growth is applied so that the yield on the original logic grows over the years—many companies raise dividends annually.
Why dividend investing appeals to many
Dividend payers can provide income in retirement and a degree of downside cushion when markets fall, since you are still receiving cash. Reinvesting dividends in accumulation years harnesses compounding. Keep in mind: dividend stocks are not necessarily safer than non-dividend stocks, and a high yield can sometimes signal trouble. Use this tool to model a strategy; for total return and comparison with other investments, use our investment return calculator and compound interest calculator.
Fitting dividends into retirement
In retirement, dividends can supplement Social Security and withdrawals from IRAs or 401(k)s. Our retirement income calculator and retirement calculator help you plan total income and sustainable withdrawal rates; this calculator helps you see how a dividend-focused slice of your portfolio might grow and pay out over time.
Dividend Calculator FAQ
Reinvesting (DRIP) compounds growth and usually leads to a much higher long-term balance. In taxable accounts, reinvested dividends are still taxed. In retirement accounts, DRIP is tax-deferred. Our calculator lets you compare final balance and total dividends with and without reinvestment.
It depends on the sector and your goals. Broad market indexes often yield around 1–2%; many dividend-focused funds or stocks yield 3–5%. Very high yields (e.g., 8%+) can be a red flag. Use our calculator with different yield and growth assumptions to see how they affect long-term results.
We apply your dividend growth rate so that the effective yield (on the original logic) increases each year. That approximates companies that raise their dividend over time. Your actual dividends will depend on real dividend policies and share price; this is a simplified projection.
Plan Your Full Retirement
Use our retirement calculator for Monte Carlo simulations and country-specific planning.
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