Dividend Yield Calculator
See how much passive income your shares could generate.
Model DRIP compounding with dividend growth rate projection.
How dividends work
Some stocks pay you just for owning them. Companies that generate consistent profits often return a portion to shareholders as dividends, typically four times a year. The yield is that payout expressed as a percentage of the current share price, so you can compare it to other income-generating options at a glance.
The more shares you hold, the more income you collect. Enter an amount and see what that income looks like today and how it compounds over ten years, with or without reinvesting the payouts.
Yield is a ratio. The annual payout divided by the share price: that's it. Simple to calculate, but deceptive over time, because the denominator moves. A stock you bought at $40 that now pays $3 annually yields 7.5% on your cost. On today's price of $60, it's only 5%. That gap is yield on cost, and it widens every year a company raises its dividend.
DRIP changes the compounding story entirely. Each dividend payment converts back into fractional shares at the current price. Those shares generate their own dividends the following period. The growth isn't linear. It accelerates, quietly, year after year. The calculator models this with a constant price assumption and a variable dividend growth rate, so you can stress-test the trajectory before you commit capital.
One honest caveat: dividends are paid in nominal dollars. If a company raises its payout 3% annually while inflation runs at 4%, your real purchasing power is falling. Run the numbers with the inflation calculator alongside this one and see what your income is actually worth in ten years.
Dividend yield calculator: common questions
How does the dividend yield calculator work?
Enter a share price, annual dividend per share, and number of shares. The calculator shows your current yield, annual income, and per-period breakdown. In Pro mode, add a dividend growth rate, toggle DRIP reinvestment, set a tax rate, and project income over a multi-year horizon. The chart shows how income compounds with and without reinvestment.
What is DRIP and should I enable it?
DRIP — Dividend Reinvestment Plan — automatically converts each dividend payment into additional fractional shares instead of paying cash. Over time those new shares generate their own dividends, accelerating income growth. If you need income now, take the cash. If you're in an accumulation phase and don't need the income, DRIP compounds your position year over year.
What dividend growth rate should I assume?
Dividend aristocrats — companies that have raised their dividend for 25+ consecutive years — have averaged 6–8% annual growth historically. Blue-chip income stocks typically grow dividends at 3–5%. High-yield stocks often have lower or flat growth. Use 3% as a conservative baseline and 6–7% for a company with a strong dividend growth track record. Zero is valid for a constant-dividend scenario.
Is a higher dividend yield always better?
No. A very high yield — typically above 8–10% — often signals the market expects the dividend to be cut. Companies pay dividends from earnings; if the payout ratio exceeds sustainable levels, the dividend is at risk. A modest yield from a company consistently raising its payout is generally more valuable than a high yield from one under financial pressure.
Does the calculator account for taxes on dividends?
Yes, in Pro mode. Enter your applicable tax rate to see after-tax annual income. Qualified dividends from most US stocks held over 60 days are taxed at long-term capital gains rates: 0%, 15%, or 20% depending on your income. Ordinary dividends from REITs and some foreign stocks are taxed as regular income. Dividends inside a Roth IRA are tax-free.