Dividend Calculator
Project dividend income and portfolio growth with reinvestment (DRIP) and dividend raises
Your Investment
Yearly raise in the dividend per share
0% in tax-advantaged accounts
Buy more shares with every dividend instead of taking cash
Portfolio value after 20 years
$352,008
$130,000 invested · $90,429 of dividends received and reinvested
Yearly dividend income
$12,765
at the start of year 21
Monthly income
$1,064
on average
Total dividends received
$90,429
after tax
Yield on cost
9.82%
yearly income ÷ money invested
Year-by-Year Growth
| Year | Invested | Portfolio Value | Dividends That Year | Yearly Income Next Year |
|---|---|---|---|---|
| 1 | $16,000 | $17,058 | $414 | $517 |
| 2 | $22,000 | $24,692 | $635 | $755 |
| 3 | $28,000 | $32,955 | $877 | $1,017 |
| 4 | $34,000 | $41,903 | $1,143 | $1,306 |
| 5 | $40,000 | $51,596 | $1,436 | $1,623 |
| 6 | $46,000 | $62,102 | $1,758 | $1,972 |
| 7 | $52,000 | $73,495 | $2,113 | $2,356 |
| 8 | $58,000 | $85,854 | $2,503 | $2,779 |
| 9 | $64,000 | $99,268 | $2,932 | $3,243 |
| 10 | $70,000 | $113,833 | $3,403 | $3,755 |
| 11 | $76,000 | $129,655 | $3,922 | $4,317 |
| 12 | $82,000 | $146,850 | $4,494 | $4,936 |
| 13 | $88,000 | $165,544 | $5,122 | $5,618 |
| 14 | $94,000 | $185,878 | $5,814 | $6,368 |
| 15 | $100,000 | $208,004 | $6,575 | $7,194 |
| 16 | $106,000 | $232,090 | $7,414 | $8,103 |
| 17 | $112,000 | $258,320 | $8,337 | $9,105 |
| 18 | $118,000 | $286,898 | $9,354 | $10,208 |
| 19 | $124,000 | $318,046 | $10,474 | $11,424 |
| 20 | $130,000 | $352,008 | $11,709 | $12,765 |
How Dividend Growth Compounds
A dividend stock pays you a share of its profits. When you reinvest those payments, you buy more shares, which pay more dividends next time. Add companies that raise their dividends each year, and your income can grow much faster than the money you put in.
The Formulas
Yearly dividend = shares × dividend per share
Dividend yield = dividend per share ÷ price
Yield on cost = yearly income ÷ amount invested
Contributions buy shares monthly; dividends are paid at the chosen frequency.
Dividend Investing Tips
- •A very high yield can signal a dividend at risk of being cut
- •Look for companies with a history of raising dividends
- •Holding dividend stocks in tax-advantaged accounts avoids yearly dividend tax
- •Diversify across sectors instead of chasing the highest yields
- •Total return, price growth plus dividends, matters more than yield alone