Enter the amount you invest, the dividend yield and how fast the dividend grows each year. Choose whether dividends are reinvested. The calculator shows the income in the first year and in the last year, and the value of your holding if dividends are reinvested.
How the calculation works
Yearly income = invested amount x dividend yield. Each year the dividend per share grows by the growth rate. With reinvesting, each year’s dividends buy more of the same holding, so next year’s income is paid on a larger amount. Share-price changes are not included: the calculator only follows the income.
FAQ
What is dividend yield?
Yearly dividends per share divided by the share price. A $100 share that pays $3 a year has a 3% yield. Yields change every day with the price.
Is a higher yield always better?
No. A very high yield can mean the market expects the dividend to be cut. A lower yield that grows steadily can pay more over many years.
What does reinvesting (DRIP) change?
Reinvested dividends buy more shares, which pay their own dividends. Over 10-20 years this can add a large share of the final income.