Money calculators · Updated September 3, 2026
Dividend Calculator
Project what a dividend portfolio pays out and grows to, with or without reinvesting, and watch yield on cost climb as the dividends themselves grow.
| Year | Dividends | Value | Yield on cost |
|---|---|---|---|
| 5 | $1,705 | $53,465 | 4.3% |
| 10 | $3,260 | $95,148 | 5.9% |
| 15 | $5,703 | $156,913 | 8.1% |
| 20 | $9,563 | $249,482 | 11.3% |
How the dividend calculator works
dividends(year) = value × current yield value(next year) = value × (1 + price growth) + reinvested dividends + contribution current yield = current yield × (1 + dividend growth) ÷ (1 + price growth) yield on cost = dividends(year) ÷ total invested
The yield adjusts each year so that dividends per share grow at your dividend growth rate while the price grows at the price growth rate, which is how yield on cost and current yield diverge in real portfolios. Taxes, fees and dividend cuts are not modeled.
Frequently asked questions
How is dividend income calculated?
Annual dividends = portfolio value × current dividend yield. With reinvestment, each year's dividends buy more shares, so next year's dividends grow with both the dividend rate and the larger holding.
What is yield on cost?
Dividends received in a year divided by the total amount you invested. Because dividends grow while your cost stays fixed, yield on cost rises over time; a 3.5% yield growing 5% a year becomes about 9% on cost after 20 years.
What does DRIP mean?
A dividend reinvestment plan automatically uses dividends to buy more shares instead of paying cash. Over long periods reinvestment accounts for a large share of total return, which the reinvest toggle shows.
Are dividends taxed?
Yes, in a taxable account: qualified dividends are taxed at 0%, 15% or 20% depending on income; non-qualified dividends at ordinary rates. Dividends in an IRA or 401(k) are not taxed when paid. The calculator shows pre-tax figures.
What growth rates are realistic?
Broad US dividend indexes have grown dividends around 5 to 6% a year over long periods, with share prices growing at a similar pace. High yields with low growth (utilities, REITs) and low yields with high growth (technology) are the usual trade-off.
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Sources and updates
Figures are for tax year 2026 and were checked against the sources below on . Rates change every January; we review every data file at the start of each year and whenever a state announces a mid-year change.
- Investor.gov (SEC), dividends and dividend reinvestment
- IRS Topic 404, Dividends (qualified vs ordinary)
This calculator gives estimates for information only and is not tax, legal or financial advice. Your employer's payroll system, local taxes, benefits and year-to-date wages can change the exact amounts on your pay stub. See how we calculate.