Dividend Calculator

Calculate dividend income, yield, and DRIP compound growth. Free with tax estimation.

Basic Income: Calculate annual dividend income from shares you own or plan to buy.
Annual Dividend Income
$350.00
Shares Owned
100
$29.17
Monthly Income
$87.50
Per Payment
$3.50
Annual DPS

Tax Estimation

$52.50
Estimated Tax
$297.50
After-Tax Income

Tax rates shown are for 2024 single filers. Qualified dividend rates apply to most US stock dividends held 60+ days. Consult a tax professional for personalized advice.

Want to estimate your dividend taxes?

Use our Dividend Tax Calculator for federal, state, and NIIT tax estimates on your dividend income.

Tax Calculator

Want to value dividend stocks?

Use our DDM Calculator to find intrinsic value using the Dividend Discount Model.

DDM Calculator

What is Dividend Yield?

Dividend yield measures the annual dividend payment as a percentage of a stock's current price. It tells investors how much cash flow they're getting for each dollar invested in dividends.

For example, if a stock trades at $100 and pays $3 in annual dividends, its dividend yield is 3%. A higher yield means more income per dollar invested, but extremely high yields (8%+) can signal financial distress or an unsustainable payout.

Popular dividend ETFs like SCHD (Schwab US Dividend Equity) typically yield 3-4%, while high-yield investments like JEPI or REITs like O (Realty Income) can yield 5-8%+.

Dividend Formulas

Dividend Yield

Dividend Yield = (Annual Dividend Per Share ÷ Stock Price) × 100

Annual Dividend Income

Annual Income = Shares Owned × Annual Dividend Per Share

DRIP Future Value (Simplified)

FV = Initial × (1 + Yield + Growth)^Years

Yield on Cost

YOC = (Current Annual Dividend ÷ Original Purchase Price) × 100

Excel / Google Sheets Formulas

Copy these formulas into your spreadsheet. Replace cell references with your actual data locations.

Calculation Excel Formula
Dividend Yield =Annual_DPS/Stock_Price
Annual Income =Shares*Annual_DPS
Shares from Investment =Investment_Amount/Stock_Price
DPS from Yield =Stock_Price*Yield
DRIP Future Value =FV(yield,years,-annual_dividend,-initial)
Yield on Cost =Current_Annual_DPS/Original_Cost_Per_Share
Monthly Income =Annual_Income/12

Dividend Yield Benchmarks

Typical dividend yields by investment type (as of 2024):

Investment Type Typical Yield Examples
S&P 500 Index 1.2-1.5% SPY, VOO, IVV
Dividend Growth ETFs 2.5-4% SCHD, VYM, DGRO
Dividend Aristocrats 2-3% JNJ, KO, PG, PEP
Covered Call ETFs 7-12% JEPI, QYLD, XYLD
REITs 4-8% O, VNQ, AGNC
Utilities 3-5% NEE, DUK, SO
Tech (Growth) 0.3-1% AAPL, MSFT, NVDA

DRIP vs Cash Dividends: Which is Better?

Reinvest (DRIP)

  • Compound growth accelerates wealth building
  • Automatic—no decisions needed
  • Dollar-cost averaging into more shares
  • Best during accumulation phase (20s-50s)
  • Ideal for tax-advantaged accounts (IRA, 401k)

Take Cash

  • Income for living expenses
  • Flexibility to invest elsewhere
  • Useful when stock is overvalued
  • Best during retirement/income phase
  • Diversification opportunities

Want to measure overall investment growth?

Use our CAGR Calculator to calculate your compound annual growth rate including price appreciation.

CAGR Calculator

Frequently Asked Questions

To calculate dividend income: multiply the number of shares you own by the annual dividend per share. For example, 100 shares of a stock paying $2.00 annual dividend = $200 per year. If you know the yield instead, multiply your investment value by the yield percentage. Our calculator handles both methods automatically.

Dividend yield is the annual dividend payment divided by the stock price, expressed as a percentage. Formula: Dividend Yield = (Annual Dividend Per Share ÷ Stock Price) × 100. A $100 stock paying $3 annually has a 3% yield. Yield fluctuates as stock prices change—when prices fall, yield rises and vice versa.

DRIP (Dividend Reinvestment Plan) automatically uses your dividend payments to purchase more shares of the same stock. This creates compound growth: more shares → more dividends → even more shares. Over 10-20+ years, DRIP can dramatically boost returns. Most brokers offer free DRIP enrollment on any dividend-paying stock.

Dividends are taxed as either qualified or ordinary income. Qualified dividends (held 60+ days, from US corporations) are taxed at lower capital gains rates: 0% (income up to $47k), 15% ($47k-$518k), or 20% (over $518k). Ordinary dividends are taxed at your regular income rate (up to 37%). Most dividends from SCHD, VOO, SPY are qualified.

Yield on cost measures your personal dividend yield based on what you originally paid, not today's price. Formula: YOC = (Current Annual Dividend ÷ Your Purchase Price) × 100. If you bought at $50 and the dividend grew to $3/year, your YOC is 6%—even if the current yield is only 3% because the stock doubled to $100.

Most US stocks pay quarterly (4 times per year). Monthly payers include REITs like Realty Income (O) and covered call ETFs like JEPI. Some international stocks pay semi-annually or annually. ETFs like SCHD and VOO pay quarterly. You can build a "dividend calendar" with multiple stocks to receive monthly income.

Dividend rate (or dividend per share) is the dollar amount paid per share annually—e.g., $2.50/share. Dividend yield is the percentage return relative to the stock price—e.g., 2.5%. Rate tells you actual dollars you'll receive; yield helps compare investments with different stock prices.

A "good" yield depends on your goals. The S&P 500 yields ~1.3%. Dividend ETFs like SCHD yield 3-4%. High-yield stocks offer 5-10%+, but very high yields often signal risk. Generally, 2-4% is attractive for growth + income investors, while 4-6% suits income-focused investors willing to accept less growth.

For annual income: =Shares*Annual_DPS. For dividend yield: =Annual_DPS/Stock_Price. For DRIP future value: =FV(yield,years,-annual_dividend,-initial_investment). Replace variable names with cell references. See our Excel formula table above for more formulas.

Reinvest (DRIP) if you're building long-term wealth and don't need income now—compounding over 10+ years is powerful. Take cash if you need income for expenses, want to diversify into other investments, or the stock seems overvalued. Many investors reinvest during working years and switch to cash in retirement.
Disclaimer: This dividend calculator provides estimates for educational purposes only. Actual dividend payments depend on company decisions, may be reduced or eliminated, and tax implications vary by individual circumstance. Yields shown for preset tickers are approximate and change daily. Consult a financial advisor and tax professional before making investment decisions.

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