This dividend income calculator projects how much income a portfolio of dividend-paying investments could produce over time, depending on the yield, the growth of dividends and whether you reinvest them.
How to use this calculator
- Amount invested: the value of the portfolio today.
- Dividend yield: yearly dividends divided by the price, in percent.
- Yearly dividend growth: how fast you assume dividends increase each year.
- Reinvest dividends: choose Yes to use each payment to buy more shares.
Example
$20,000 invested with a 3.5% yield, dividends growing 5% a year and all dividends reinvested: after 15 years, the portfolio pays about $2,240 a year, or about $190 a month. Over the period, you would have received about $20,000 of dividends in total.
Why reinvesting matters
When dividends are reinvested, they buy more shares, which pay more dividends the next year. It is compounding applied to income. Set the option to No to compare with spending the dividends as they arrive.
Assumptions and limits
The calculator assumes the share price grows at the same pace as the dividend, so the yield stays constant. In reality, prices move up and down, and companies can cut or suspend their dividends. Taxes on dividends are not included. This tool illustrates a scenario; it does not predict the income of any particular investment.
Frequently asked questions
What is a dividend yield?
It is the yearly dividend per share divided by the share price. A $2 dividend on a $50 share is a 4% yield.
Is a high yield always better?
Not necessarily. A very high yield can be a sign that the market expects the dividend to be cut.
Related calculators
- Compound Interest Calculator: See how a starting amount and monthly savings grow over time.
- Retirement Savings Calculator: Estimate your savings at retirement and the monthly income they could provide.
- Inflation Calculator: What your money will be worth in the future, in today’s terms.
This page was written with the help of AI tools (Claude, by Anthropic). The calculator runs entirely in your browser: nothing you enter is sent or stored.