Dividend Calculator
Project dividend income growth with DRIP reinvestment. See yield on cost and income in 10/20/30 years.
Year 1 Income
$1,750.00
Total Dividends
$26,911.92
Portfolio Value
$76,911.92
Dividend Summary
| Year 1 Dividend Income | $1,750.00 |
| Projected Income (Year 10) | $3,960.98 |
| Total Dividends Received | $26,911.92 |
| Portfolio Value (with DRIP) | $76,911.92 |
| Yield on Cost | 7.92% |
Use the Dividend Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Our Dividend Calculator helps you visualize the powerful impact of dividend reinvestment (DRIP) on your investment portfolio. By projecting your dividend income growth over 10, 20, and 30 years, you can understand how compounding can significantly boost your returns. For instance, a stock yielding 3.5% in 2026 with a 5% dividend growth rate could see its income double in roughly 14 years through consistent reinvestment.
This calculator utilizes a compound growth formula to project future dividend income, factoring in your initial investment, current dividend yield, annual dividend growth rate, and reinvestment strategy. We calculate the new number of shares acquired each year through DRIP based on the prevailing dividend per share and the stock's assumed future price. The core calculation for future dividend income (DI) is: DI = Initial Investment * (1 + Yield)^n * (1 + Dividend Growth Rate)^n, adjusted annually for reinvested dividends and the increasing share count.
While powerful, dividend projections are not guarantees. Remember that dividend growth rates can fluctuate, and companies can cut or suspend dividends, especially during economic downturns. Avoid making investment decisions based solely on projected income; always consider the company's fundamentals and your overall financial goals.
Example: Building a $100,000 Dividend Portfolio
- 1 Imagine you invest $100,000 today into a stock with a 4% current dividend yield, and you anticipate a 6% annual dividend growth rate. You plan to reinvest all dividends.
- 2 After 10 years, assuming an average stock price increase of 7% per year, your initial $100,000 investment could generate an annual dividend income of approximately $8,954. By year 20, this could grow to around $26,081 annually, and by year 30, a substantial $75,992 per year.
- 3 Your yield on cost after 10 years would be around 8.95%, after 20 years it would be 26.08%, and after 30 years, an impressive 75.99%.
- 4 This example demonstrates how consistent dividend reinvestment can transform a modest initial yield into a significant income stream over the long term, highlighting the power of compounding and patience in dividend investing.
Source: SEC · Last updated: April 2026
Frequently Asked Questions
How are dividends taxed in 2026?
What is DRIP and should I reinvest dividends?
What is a good dividend yield?
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