Dividend Calculator
Enter your shares, share price, and annual dividend per share to get your annual income, dividend yield, and yield on cost. Turn on the projection to see how DRIP and dividend growth compound over time.
How to calculate dividend
Multiply the number of shares you hold by the annual dividend per share to get your gross annual income before tax. Divide that per-share figure by the current share price to get the dividend yield as a percentage. If you bought the shares at a different price, dividing by your cost basis gives the yield on cost, which shows the true return on your original capital. For DRIP projections, the calculator reinvests each year's dividend income by buying additional fractional shares at the current price, then applies the annual growth rate to the per-share dividend at the start of each subsequent year.
Annual income = shares x annual DPS; Yield = (annual DPS / share price) x 100; Yield on cost = (annual DPS / cost basis) x 100
Worked example
You own 200 shares of a stock priced at $40. The annual dividend is $1.60 per share (quarterly payments). Cost basis was $32 per share. You enable DRIP with 5% annual dividend growth over 5 years.
- Annual income: 200 shares x $1.60 = $320.00
- Per quarterly payment: $1.60 / 4 = $0.40 per share, so $0.40 x 200 = $80.00
- Dividend yield: $1.60 / $40.00 = 4.00%
- Yield on cost: $1.60 / $32.00 = 5.00%
- Year 1 DRIP: $320 / $40 = 8 new shares; shares become 208. DPS stays $1.60.
- Year 2: DPS grows 5% to $1.68; income = 208 x $1.68 = $349.44; buy 8.74 more shares.
- Year 3: DPS = $1.764; shares = 225.7; income = $398.14; buy 9.95 more shares.
- Year 4: DPS = $1.852; shares = 235.7; income = $436.71; buy 10.92 more shares.
- Year 5: DPS = $1.945; shares = 246.6; income = $479.65.
Result: Total dividends over 5 years: approximately $1,983. Projected portfolio value: approximately $9,864 (246.6 shares x $40).
Frequently asked questions
Where do I find the numbers to enter?
All the figures come from you; this calculator does not fetch live market data. Find your share count and the price you paid (your cost basis) on your brokerage statement. Find the current share price and the annual dividend per share, or the dividend yield, on your broker's quote page or the company's investor relations site. If only a per-quarter dividend is listed, multiply it by the number of payments per year to get the annual figure.
What is dividend yield and how is it calculated?
Dividend yield is the annual dividend per share expressed as a percentage of the current share price. For example, a $2 annual dividend on a $50 stock gives a yield of 4%. It tells you the income return on the market value of your investment, ignoring any price appreciation.
What is yield on cost?
Yield on cost (YOC) uses the price you originally paid per share, not the current market price, as the denominator. If you bought shares at $25 and the stock now pays $2 per share annually, your YOC is 8%, even if the current yield (on the $50 market price) is only 4%. YOC grows over time if the dividend is raised while your cost stays fixed.
How does dividend reinvestment (DRIP) work?
A DRIP (Dividend Reinvestment Plan) automatically uses your dividend payments to purchase more shares of the same stock, often without brokerage fees. Over time, the extra shares generate their own dividends, creating a compounding effect. This calculator models DRIP by dividing each year's income by the share price to add fractional shares.
What is the difference between annual, quarterly, and monthly dividends?
Most US stocks pay quarterly (4 times per year); some REITs and ETFs pay monthly (12 times per year); a few international companies pay annually. The frequency does not change your total annual income, but it does affect the size of each payment and how quickly a DRIP compounds, since more frequent payments buy new shares sooner.
Are dividends taxed?
In most countries, yes, and this calculator shows gross income before any tax. In the US for the 2026 tax year, qualified dividends (from shares held more than 60 days) are taxed at long-term capital gains rates of 0%, 15%, or 20% depending on your income, while ordinary dividends are taxed as regular income. The income thresholds for each band are adjusted every year, and tax-sheltered accounts such as a Roth IRA or 401(k) can eliminate or defer the tax. Always consult a tax professional for advice specific to your situation.
What is a sustainable dividend payout ratio?
The payout ratio is the percentage of a company's earnings paid out as dividends. A ratio below 60% is generally considered sustainable for most sectors; above 80% may signal the dividend could be cut if earnings fall. REITs and utilities often run higher ratios by design, because they distribute most of their cash flow.