See exactly how much your shares pay you every year
Investment Details
Qualified dividends: often 0–20% · Enter 0 to see gross income
1–50 years · used for DRIP compounding table
DRIP (Dividend Reinvestment Plan)
Automatically reinvest after-tax dividends to buy more shares each period. Projection assumes 2% annual dividend growth.
Dividend Summary
Dividend Yield vs. Common Benchmarks
Income Projection (2% annual dividend growth assumed)
Total Dividends Received (after tax, 10 yr)
$10,238
Annual Income in Year 10
$1,117
Total vs. Initial Value
37.2%
cumulative return from dividends only
How Dividend Yield is Calculated
Dividend yield measures how much a company pays out in dividends relative to its share price. It is calculated as:
Disclaimer: This calculator is for illustrative purposes only. Results assume constant share price and a fixed 2% annual dividend growth rate for projections. Actual dividends, yields, and tax treatment vary by company, country, and individual tax situation. Consult a qualified financial advisor before making investment decisions.
The Dividend Calculator helps income investors instantly compute annual dividend income, dividend yield, and after-tax cash flow from any stock or ETF. Enter your number of shares, current share price, and dividend per share to see gross and net income across monthly, quarterly, semi-annual, or annual payout schedules. Enable DRIP mode to model long-term compounding growth.
Dividend yield equals the annual dividend per share divided by the current share price, expressed as a percentage. For example, a $2.20 annual dividend on a $55 stock gives a 4.00% yield. A higher yield means more income relative to what you paid for the shares.
A Dividend Reinvestment Plan (DRIP) automatically uses your dividend payouts to purchase additional shares instead of paying cash. Over time this compounds your position — more shares earn more dividends, which buy even more shares. The calculator models DRIP with 2% annual dividend growth to show realistic long-term projections.
Qualified dividends (from most US stocks held over 60 days) are taxed at preferential rates of 0%, 15%, or 20% depending on your income. Ordinary dividends are taxed as regular income. Enter your effective dividend tax rate in the calculator to see your true after-tax income.
The S&P 500 historically averages around 1.5–2%. A yield of 3–5% is generally considered solid for income investors. Yields above 6–7% warrant caution — they may signal a falling share price or an unsustainable payout. Always check the payout ratio and earnings coverage alongside yield.