Dividend Calculator
Three Different Questions, One Calculator
"Dividend" calculations usually mean one of three different things depending on what you're trying to find: the yield a stock offers relative to its price, the actual income a given number of shares produces, or how a position grows over time if every dividend is reinvested. This calculator handles all three as separate modes, since they use different formulas and answer different questions.
The Formulas
Dividend Income = Shares Owned × Dividend Per Share × Payments Per Year
DRIP (estimate) = Investment × (1 + (Yield% + Growth%) ÷ 100)Years
The DRIP (Dividend Reinvestment Plan) mode is an estimate that assumes a constant combined yield-plus-growth rate compounding annually — actual returns will vary with market price changes and dividend policy shifts.
Where Each Mode Is Used
- Yield — comparing income potential across stocks with very different share prices, since yield normalizes for price.
- Income — projecting actual cash flow from a known share count, useful for dividend-focused income investors.
- DRIP — estimating long-term compounding when dividends are automatically reinvested rather than taken as cash.
Dividend Yield Across Different Price Points
| Annual Dividend/Share | Share Price | Dividend Yield |
|---|---|---|
| $1.50 | $50.00 | 3.00% |
| $2.00 | $80.00 | 2.50% |
| $0.80 | $25.00 | 3.20% |
Yield alone doesn't capture dividend safety or growth — a very high yield can sometimes signal a falling share price rather than a generous payout.
How to Use This Calculator
- Choose the mode: Dividend Yield, Dividend Income, or Dividend Reinvestment (DRIP).
- For Yield, enter the Annual Dividend Per Share and Share Price.
- For Income, enter Shares Owned, Dividend Per Payment, and Payments per Year.
- For DRIP, enter Initial Investment, Dividend Yield, optional Dividend Growth Rate, and Years.
- Select Calculate to see the result for your chosen mode.
Related Calculations
Selling a dividend-paying position? Check the tax impact with the Capital Gains Calculator, or evaluate bond income instead with the Bond Yield Calculator.