Dividend Calculator
This dividend calculator shows how much income a stock or fund pays you: the dividend yield, the annual and monthly amount, what each check is worth, and what's left after the tax rate you enter. It also projects the position year by year with dividend growth, price growth and, if you like, automatic reinvestment (DRIP), so you can see your yield on cost climb over time.
Updated
Results
- Dividend yieldAnnual dividend ÷ share price
- Per paymentBefore tax
- Estimated tax per yearAt the rate you entered
- Annual income after tax
- Monthly income after taxAverage
- Shares owned
- Position value todayShares × share price
- Dividends in the final yearBefore tax, last year of the projection
- Position value at the endShares × projected price; without DRIP, dividends received are not included
- Total dividends receivedAfter tax, over the whole projection
- Yield on cost, final yearFinal-year dividend ÷ original share price
- Shares at the endGrows only with DRIP
| Year | Shares (year end) | Dividend per share | Dividends (gross) | After tax | Position value | Yield on cost |
|---|
Results are estimates. See the methodology below.
How to use the calculator
- Calculate from: the number of shares you own, or a dollar amount you plan to invest.
- Share price and annual dividend per share. Add up a full year of payments: a stock paying $0.50 a quarter pays $2.00 a year.
- Payment frequency: monthly, quarterly, semiannual or annual. Most US stocks pay quarterly.
- Tax rate on dividends: your own federal rate (see below). Leave it at 0% for pre-tax figures.
- Projection: years, expected dividend growth, expected price growth, and whether dividends are reinvested.
How the numbers are calculated
- Dividend yield = annual dividend per share ÷ share price.
- Shares = amount invested ÷ price when you enter dollars. Fractional shares are allowed, as many brokers offer them.
- Annual income = shares × annual dividend; monthly average = annual ÷ 12; per payment = annual ÷ number of payments per year.
- Tax = annual income × your tax rate. One flat rate is applied; brackets, state tax and the net investment income tax are not modeled.
In the projection the dividend per share grows by your dividend growth rate each year and the price by your price growth rate. With DRIP on, each year's after-tax dividends buy more shares at that year's ending price, a once-a-year simplification of reinvesting every payment. The tax rate is applied to every dividend, reinvested or not. Yield on cost = that year's dividend per share ÷ the price you started with. Without DRIP, the ending position value excludes the dividends; they appear in the total received instead.
Examples
1. 200 shares of a quarterly payer
A $50 stock paying $2.00 a year has a 4.00% yield. With 200 shares you earn $400 a year, or $100 per quarterly payment. At a 15% tax rate you keep $340, about $28.33 a month.
Assume the dividend grows 5% a year and the price 4% for 10 years:
| With DRIP | Without DRIP | |
|---|---|---|
| Shares after 10 years | 279.79 | 200 |
| Dividends in year 10 (gross) | $838.23 | $620.53 |
| Position value | $20,708.13 | $14,802.44 |
| Total dividends received after tax | $5,050.81 | $4,276.48 |
Either way, the year-10 dividend of $3.10 per share means a 6.21% yield on cost. Without DRIP the $4,276.48 sits in cash next to the shares; with DRIP the $5,050.81 has bought 79.79 extra shares.
2. $15,000 in a monthly payer
At $72 a share with $2.88 in annual dividends, $15,000 buys 208.33 shares and pays $600 a year: $50 a month, $42.50 after 15% tax. Reinvested for 20 years at the same growth rates, the position reaches 421.45 shares worth $66,488.75, paying $2,951.44 a year before tax.
3. How much for $1,000 a month?
At a 4% yield, $300,000 pays $12,000 a year, exactly $1,000 a month before tax and $850 after 15%. At a 2% yield the same money pays $500 a month.
Reading the results
Dividends are not guaranteed: a board can cut or suspend them at any time. The growth rates you enter are assumptions, not forecasts, so run a 0% dividend growth case next to your optimistic one. The yield shown depends on the dividend you enter; a quote page that uses the last twelve months of payments can show a different figure.
Frequently asked questions
How do I calculate dividend yield?
Divide the annual dividend per share by the share price. A $2.00 dividend on a $50 stock is a 4% yield. Because the price moves every day, the yield moves too, even when the dividend doesn't change.
How are dividends taxed in the US?
According to the IRS, all taxable dividends are ordinary income, but qualified dividends are taxed at the lower capital gain rates of 0%, 15% or 20%. Ordinary (non-qualified) dividends are taxed at your regular income tax bracket. The payer tells you which is which on Form 1099-DIV, which you should receive from each payer that paid you at least $10. State income tax may apply too.
What tax rate should I enter?
For qualified dividends, use the capital gain rate that matches your income (0%, 15% or 20%); for ordinary dividends, your marginal bracket. Higher earners may also owe the 3.8% net investment income tax, which the IRS applies when modified adjusted gross income exceeds $200,000 (single or head of household) or $250,000 (married filing jointly); you can add 3.8 points to the rate to approximate it. For shares in a tax-advantaged account, that account's rules apply instead.
What is yield on cost?
It is the current annual dividend divided by the price you originally paid. If you bought at $50 and the dividend has grown to $3.10, your yield on cost is 6.21%, even if the stock now trades at a higher price and a new buyer gets a lower yield.
Is it better to reinvest dividends?
Reinvesting buys more shares, which pay more dividends, so income and position size compound. Taking the cash gives you income without selling shares. Switch DRIP on and off to compare both outcomes.
Does a high yield mean a better investment?
Not necessarily. Yield rises when the price falls, so a high number can signal that investors expect a cut. Check whether earnings and cash flow cover the payout.
Sources
This calculator gives estimates for educational purposes and is not investment or tax advice. Dividends and share prices can fall, and your actual tax depends on your full return.