Dividend Calculator
Calculate your dividend income from shares owned. Enter the dividend per share or yield percentage, choose a payment frequency, and see monthly, quarterly, and annual income. Enable DRIP to project growth through reinvestment.
Monthly
$20.00
Per Payment
$60.00
Annual
$240.00
DRIP Reinvestment Projection
Annual Income in Year 10
$240.00
Shares in Year 10
100
Dividend yield vs dividend per share
Dividend yield is the annual dividend as a percentage of the current share price (annual dividend ÷ share price × 100). A stock trading at $50 that pays $2 per year has a 4% dividend yield. This metric lets you compare income across stocks at different price points.
Dividend per share (DPS) is the raw dollar amount paid per share each year. If a company pays $0.60 per quarter, the annual DPS is $2.40. Both inputs give the same result — use whichever you have available.
What is DRIP (Dividend Reinvestment Plan)?
A DRIP automatically reinvests dividend payments into additional shares of the same stock instead of paying cash. Over time, this compounds your position — more shares generate more dividends, which buy even more shares. Many brokerages offer automatic DRIP at no cost.
The projection in this calculator assumes the share price and yield remain constant over the period — a simplification. In reality, both will change. Use it as a rough order-of-magnitude estimate rather than a precise forecast.
Frequently asked questions
Is a high dividend yield always good?
Not necessarily. A very high yield (above 6–8%) can signal that the market expects the dividend to be cut, or that the share price has fallen significantly. A sustainable dividend from a profitable company is preferable to a high yield from a company with declining earnings. Check the payout ratio (dividends ÷ earnings) — below 70% is generally considered sustainable.
Are dividends taxed?
In most countries, dividends are taxable income. In the US, qualified dividends (from US companies held for a minimum period) are taxed at the lower capital gains rate (0%, 15%, or 20% depending on income). Ordinary dividends are taxed as regular income. Dividends in tax-advantaged accounts (401k, IRA, ISA) may be sheltered from tax.
